Bobby moves along an indifference curve for shirts and pants by increasing consumption of shirts and decreasing consumption of pants. As Bobby has more and more pants, the number of shirts he is willing to trade for yet another pair of pants
A) decreases.
B) increases.
C) does not change.
D) initially decreases and then increases.
A
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Use the following table with data for a private (no government) closed economy to answer the next question. All figures are in billions of dollars.Domestic Output or Income (RGDP = DI)Consumption$540$540560555580570600585620600640615660630If planned investment is $25 billion, then aggregate expenditures at the income level of $560 billion will be
A. $565 billion. B. $585 billion. C. $580 billion. D. $595 billion.
A negative externality is a situation in which
A) there is a spillover of benefits. B) a cost associated with an economic activity is borne by a third party. C) a firm is paying in excess of the total costs of producing a good. D) none of the above.
What is the term referring to the situation when a central bank makes short-term loans available in situations of severe financial panic or stress?
a. deposit insurance b. lender of last resort c. reserve insurance d. Fed loans
A fall in investor confidence causes the equilibrium level of output to fall
What will be an ideal response?