Identify the correct statement
a. Aggregate demand alone determines equilibrium price and output.
b. Aggregate supply alone determines equilibrium price and output.
c. Aggregate demand and aggregate supply determine equilibrium price and output.
d. Aggregate demand shows the positive relationship between price level and real GDP.
e. Aggregate supply shows the negative relationship between price level and real GDP.
c
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People are most likely to make their opinions on a potential piece of legislation known to their representatives when
A) the legislation matters greatly to them, whether or not it affects their private interests. B) the legislation will affect their private interests substantially. C) they believe their actions will make enough difference to justify the effort. D) they can do so at low cost to themselves.
A nation should only import those goods for which it has
a. lower opportunity costs than its trading partner b. higher opportunity costs than its trading partner c. zero transaction costs d. lower costs of production than its trading partner e. absolute advantage in production compared to its trading partner
The law of comparative advantage indicates that if a group of individuals wants to maximize their joint output, then each good should be supplied by
A) the person with the most advanced technical knowledge. B) the person that can accomplish the task most rapidly. C) the person with the lowest wage rate. D) the low opportunity cost producer.
If average total cost is declining, then:
A. marginal cost must be less than average total cost. B. marginal cost must be greater than average total cost. C. the average fixed cost curve must lie above the average variable cost curve. D. total cost must also be declining.