If an economy is producing a combination of goods inside its production possibilities curve, it may mean that the nation
a. is overproducing.
b. is maximizing its production.
c. is under utilizing its resources.
d. has no room to grow.
c. is under utilizing its resources.
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The self-correcting tendency of the economy means that rising inflation eventually eliminates:
A. unemployment. B. exogenous spending. C. recessionary gaps. D. expansionary gaps.
After John's income rose by 8 percent, the amount of chicken he consumed fell by 2 percent. This means that
a. his income elasticity for chicken is positive b. chicken is a normal good for John c. his demand curve for chicken shifted to the left d. his demand curve for chicken shifted to the right e. John is spending more of his income on chicken than before
A country has private saving of $100 billion, public saving of -$30 billion, domestic investment of $50 billion, and net capital outflow of $20 billion. What is its supply of loanable funds?
a. $50 billion b. $70 billion c. $90 billion d. $120 billion
Refer to Table 21.5:Table 21.5QTFCTVCTCAVCMC0 15--1 23 2 43 15 The marginal cost of the third unit of output in Table 21.5 is
A. $15. B. $4. C. $30. D. $3.