If the current margin is greater than the desired margin, the firm should
a. Increase production
b. Decrease production
c. Not change production level
d. Production ceases
a
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Leakages are offset by investment and government spending in the circular flow model
a. True b. False Indicate whether the statement is true or false
Each day Sue works 8 hours and produces 7 units of goods and services. Mary works 10 hours each day and produces 10 units of goods and services. It follows that
a. Sue's productivity is higher than Mary's. b. Mary's productivity is higher than Sue's. c. Sue's income per hour will be higher than Mary's. d. Sue's income per day will be higher than Mary's.
Suppose real estate prices rise by 40 percent in a four-year period, while goods and services rise in price by 8 percent in the same time period. Population, the stock of houses, and other variables important to real estate prices have remained almost constant. Which of the following is most likely?
A. GDP has increased by about 40 percent over the four-year period. B. Nominal wealth has declined. C. Real wealth has increased. D. Asset inflation has occurred.
Setting up a hub-and-spoke distribution towards inventory and retail delivery is an example of
A. reduced consumer transactions cost. B. reduced producer transactions cost. C. increased consumer transactions cost. D. increased producer transactions cost.