If aggregate production in the economy exceeds aggregate purchases
A. firms are producing more during the year than they are selling.
B. unintended inventory investment is negative.
C. the economy is operating at a real GDP greater than equilibrium GDP.
D. saving must be negative.
A. firms are producing more during the year than they are selling.
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When Gabriel made a rational choice to spend his entire allowance on candy bars, he did so by comparing the
A) benefits of the candy bars to the desires he had for the candy bars. B) marginal benefits of the candy bars to the marginal costs of the candy bars. C) opportunity costs of the candy bars to the scarcity of the candy bars. D) benefits of the candy bars to the scarcity candy bars. E) self-interest to the social interest.
Fill in the blank: National income accountants define a(n) ________ good as something purchased without the goal of reselling it or further processing or remanufacturing it into another sellable good
A) scarce B) intermediate C) final D) finished E) completed
What causes a country to specialize in certain products?
(A) The ability to trade with other nations. (B) The interests of the citizens. (C) The resources of the nation. (D) The money it can earn from producing particular products.
A rightward shift in a demand curve and a leftward shift in a supply curve both result in a
A. Lower equilibrium quantity. B. Higher equilibrium quantity. C. Lower equilibrium price. D. Higher equilibrium price.