If firms are producing an output greater than planned expenditures, these firms will cut back on production, which decreases GDP
Indicate whether the statement is true or false
TRUE
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Sjen Mavago, the economics minister of the country of X-Marks-the-Spot, has concluded that entrepreneurs are unable to generate the kind of growth the country needs. Her decision to create state enterprises might be motivated by the desire to
a. earn profit b. provide jobs for friends and relatives of government officials c. take risks d. encourage a free market e. limit government's role in the economy
Which of the following is the primary source of high earnings in a market economy?
A) a willingness to work hard even if you are not productive B) a willingness to exploit workers and consumers C) the ability to provide others with things that they value highly D) a willingness to engage in actions where you gain at the expense of others
Which of the following federal agencies is NOT engaged in economic regulation?
A. Federal Aviation Administration B. Food and Drug Administration C. the Federal Reserve D. Federal Deposit Insurance Corporation
Refer to the graph below representing the purely competitive market for a product. When the market is at equilibrium, the producer surplus would be represented by the area:
A. b + c
B. b
C. c
D. b + c + d