The basic activity of a firm is
A) to use inputs to produce outputs of goods and services.
B) to compete with other firms that produce similar products.
C) to provide jobs for its employees.
D) to set the prices of its products as high as possible.
A
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GDP is defined as the market value of all ________ in a given time period
A) final goods produced in a country B) final goods and services produced by citizens of a particular country regardless of where in the world they are located C) final goods and services produced in a country by only the citizens of the country D) final goods and services produced in a country
A supply curve that illustrates the law of supply ____________.
Fill in the blank(s) with the appropriate word(s).
Starting from long-run equilibrium, an increase in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. lower; higher D. higher; potential
(Last Word) Art Buchwald's article "Squaring the Economic Circle" humorously describes how:
A. a person's decision not to buy an automobile eventually reduces many people's incomes, including that of the person making the original decision. B. a price increase on a single product eventually leads to rapid inflation. C. an increase in imports eventually leads to a greater increase in exports. D. a government tax rate increase eventually results in the government collecting less tax revenue than before the tax rate hike.