Operation of the total economy can best be demonstrated

Assignment Help Business Economics

Reference no: EM13860622

1. If the selling price of a product is $10, the average total cost is $8, and total sales are 5,000 units, the total profit will be

A) $5,000

B) $8,000

C) $10,000

D) $20,000

2. The total payment of resource income in the economy is equal to the total value of the output.

True or False

3. A balanced federal budget tends to have a neutral effect on the economy.

True or False

4. In the simple circular flow model, if planned I exceeds planned S, then

A) the economy is not at equilibrium

B) the size of the circular flow is increasing

C) if the economy is at full employment, then prices will rise

D) all of the above

5. The expansionary effect of a high government budget deficit can be offset by the contractionary effect of a surplus in the nation’s balance of trade.

True or False

6. The level of total output and the price level can be affected by changes in consumption.

True or False

7. If the economy is at less than full employment and exports exceed imports (while other planned injections equal other planned leakages), the economy

A) remains stable

B) expands

C) contracts

D) has falling prices

8. The operation of the total economy can best be demonstrated by a

A) merry-go-round

B) circular flow

C) Ferris wheel

D) roller coaster

Reference no: EM13860622

Questions Cloud

Companies learn from siemens reliance on bribery : What lessons should companies learn from Siemens’ reliance on bribery?

Considering adding guard rail to dangerous curve by river : Suppose that a small county is considering adding a guard rail to a dangerous curve by a river. The guard rail will cost $70,000. The average damage done to vehicles that slide off the road at the curve is $10,000. It is expected that the guard rail ..

Occupational safety and health administration : The Occupational Safety and Health Administration (OSHA) has determined that the probability of a worker dying from exposure to a hazardous chemical used in the production of fertilizer is 0.008. The cost of imposing a regulation that would ban the c..

Using an engraved plate technology : In 1796, Gottfried Christoph Härtel, a German music publisher, calculated the cost of printing music using an engraved plate technology and used these estimated cost functions to make production decisions. Graph the total cost, average total cost, av..

Operation of the total economy can best be demonstrated : The total payment of resource income in the economy is equal to the total value of the output. In the simple circular flow model, if planned I exceeds planned S, then. The operation of the total economy can best be demonstrated by a. The level of tot..

Add-on features such as movie streaming and music streaming : A internet company has a fixed cost of $1,750,000 per month and a variable cost of $25 per month per subscriber. The company charges $45.95 per month to its internet customers. The company currently has 75,000 subscribers and proposes to raise its mo..

Graph the supply and demand curves in this market : Graph the supply and demand curves in this market. Be sure to put the quantity (Q) on the horizontal axis and the price (P) on the vertical axis. You may use quantities two (Q = 2) through eighteen (Q = 18) by units of one (1) for your graph. What is..

Explain the monotonic-quasilinear-essential and convex : A consumer has preferences u(x) = 2x 1 2 1 + x2. The price of good 1 is p1 > 0 and the price of good 2 is 1. You may restrict your attention to interior solutions throughout. Explain whether these preferences are i) monotonic, ii) quasilinear, iii) e..

Indifference curve for this consumer and indicate its slope : Suppose a consumer’s preferences over goods 1 and 2 are represented by the utility function u(x, y) = (x+ y)^3. Draw an indifference curve for this consumer and indicate its slope.

User Account

All Pages