Actual investment is the:
A. investment a firm makes into stocks and bonds in order to generate profit.
B. amount that firms really allocated to new capital resources and inventory accumulation.
C. spending households engage in based on forecasted budget.
D. amount that firms actually allocate to inventory accumulation.
Answer: B
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Sweet Husks is a perfectly competitive corn farm. Currently, the expected price of an ear of corn is $0.30 and, at its current production level, Sweet Husks has a marginal cost of $.40 per ear. Which of the following statements is true?
A) Because the expected profit from an additional ear of corn is $0.10, Sweet Husks should decrease production to maximize its expected profit. B) Because the expected profit from an additional ear of corn is -$0.10, Sweet Husks should decrease production to maximize its expected profit. C) Because the expected profit from an additional ear of corn is $0.70, Sweet Husks should increase production to maximize its expected profit. D) Because the expected profit from an additional ear of corn is $0.10, Sweet Husks should increase production to maximize its expected profit.
Tax results in inefficient underproduction because it...
What will be an ideal response?
Refer to Table 7.1, which shows the relationship between the price that Gladys charges for a product and the quantity of that product that Gladys sells. Gladys' marginal revenue becomes negative starting with the production of which unit?
A. 2 B. 4 C. 6 D. None of these; marginal revenue is always positive or zero.
In the second quarter (three-month period) of 2001, U.S. nominal GDP increased but U.S. real GDP declined. We can conclude that:
A. nominal income declined by more than personal income. B. the price level rose by more than nominal GDP. C. real wages declined by more than real GDP. D. the price level fell by more than real GDP.