Profit maximization occurs when MC = MR.
Answer the following statement true (T) or false (F)
True
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The total consumption expenditure in Polonia during a certain year was $135,000, total expenditure on investment was $44,000 and total expenditure incurred by the government was $50,000
Polonia exported goods worth $10,000 during that year and imported goods and services worth $12,000. Calculate the gross national product of Polonia if foreign factors of production added a value of $14,000 in the production of goods and services in Polonia while Polonian workers living abroad added a value of $8,000 to the production process in those countries.
The period of time in which the level of output moves from a trough to a peak is called a
A) contraction or recession. B) recovery or expansion. C) plateau. D) depression.
Specializing on the basis of marginal cost of production and trading allows both parties to consume more than their respective production sets would allow
Indicate whether the statement is true or false
Which of the following does not describe a characteristic of short-term economic fluctuations?
A. Expansions and recessions are irregular in length and severity. B. Expansions and recessions are felt in only a few sectors of the economy. C. Durable-goods industries are more sensitive to short-term fluctuations than service and non-durable industries. D. The unemployment rate rises during recessions.