The country of Cedarland does not trade with any other country. Its GDP is $17 billion. Its government purchases $5 billion worth of goods and services each year and collects $6 billion in taxes. Private saving in Cedarland is $5 billion. For Cedarland,
a. investment is $6 billion and consumption is $7 billion.
b. investment is $6 billion and consumption is $6 billion.
c. investment is $7 billion and consumption is $7 billion.
d. investment is $7 billion and consumption is $6 billion.
b
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If, as a consumer, Jeannine is very sensitive to changes in the price of pineapples,
A) her demand is price elastic. B) her demand is price inelastic. C) her supply is price elastic. D) her supply is price inelastic.
A "great merger movement," whereby firms combined with former rivals to become large firms, began in the 1890s. Who was the first President to look to bigger government as a way to cope with the economic power of these concentrated industries?
(a) Woodrow Wilson (b) Herbert Hoover (c) Theodore Roosevelt (d) Franklin Roosevelt
For a perfectly competitive firm, any price below its minimum AVC is a
A) market price. B) shutdown price. C) profit maximizing price. D) negative price.
Which of these is most likely to reduce the potential output of an economy?
a. An increase in the size of the labor force b. A deterioration in the quality of the labor force c. A decrease in the cost of using computers d. A decrease in the price level e. An increase in the price level