When the production possibilities curve has shifted outward, what has happened?
a. Efficiency has dropped significantly.
b. Workers are being underutilized.
c. Scarcity has increased.
d. Factors of production have changed.
d. Factors of production have changed.
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The marginal propensity to save is 0.2. Equilibrium real GDP will decrease by $50 billion if aggregate expenditures schedule decrease by
A. $15 billion. B. $10 billion. C. $16 billion. D. $40 billion.
The table above shows sales of the firms in the chocolate industry. The four-firm concentration ratio in the industry is
A) 52 percent. B) 65 percent. C) 72 percent. D) 80 percent.
The 45-degree income line is the same as the aggregate expenditure curve
Indicate whether the statement is true or false
Even if a market is not competitive, the firms in the market may behave competitively if
A. The market is regulated. B. There are economies of scale. C. Potential competition exists. D. A natural monopoly exists.