Consider the following economic agents:
a. the government
b. consumers
c. producers
Who, in a modern mixed economy, decides what goods and services will be produced with the scarce resources available in that economy?
A) consumers
B) consumers and producers
C) producers
D) the government
E) the government, consumers, and producers
E
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The consumption function shows
A) a positive relationship between an individual's stock of wealth and his level of planned consumption. B) a negative relationship between planned consumption and aggregate saving. C) a positive relationship between disposable income and planned consumption. D) a negative relationship between disposable income and planned consumption.
Characteristics shared by monopolistically competitive markets and perfectly competitive markets include: a. differentiated products. b. advertising
c. many sellers. d. brand identity.
Economists assume that the goal of the firm is to
a. maximize total revenue b. maximize profits c. minimize costs d. equate total revenue and total cost e. break even in the long run
Table 1.2 shows the hypothetical trade-off between different combinations of Stealth bombers and B-1 bombers that might be produced in a year with the limited U.S. capacity, ceteris paribus.Table 1.2Production Possibilities for BombersCombinationNumber of B-1 BombersOpportunity cost(Foregone Stealth)Number of Stealth BombersOpportunity cost (Foregone B-1)A20NA195 B35 180 C45 150 D50 100NARefer to Table 1.2. In the production range of 20 to 35 B-1 bombers, the opportunity cost of producing 1 more B-1 bomber is
A. 15 Stealth bombers. B. 1 Stealth bomber. C. 195/20 of Stealth bombers. D. 35/20 of Stealth bombers.