The law of increasing additional cost occurs when
A) there are always shortages in some goods.
B) technology is not used.
C) resources are not perfectly adaptable for alternative uses.
D) there are always alternatives and it is costly to figure out which alternative is best.
Answer: C
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Economists often focus on average behavior because it is easier to predict
a. True b. False
When a firm has economic profits equal to zero
A. the firm's accounting profits are also zero. B. the firm should shut down. C. the firm is not earning a normal rate of return on investment. D. the firm is earning a normal rate of return on investment.
According to the life-cycle theory of consumption, people tend to consume more than they earn during their early working years.
Answer the following statement true (T) or false (F)
If the government increases expenditure by $40 billion and increases tax revenues by $40 billion, what is the impact on aggregate demand? Explain your answer
What will be an ideal response?