A lower equilibrium interest rate:
A. increases saving, reduces total spending, and increases total output.
B. decreases saving, increases total spending, and decreases total output.
C. increases investment, increases total spending, and increases total output.
D. decreases investment, decreases total spending, and increases total output.
Answer: C
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Table 1.3 shows the hypothetical trade-off between different combinations of brushes and combs that might be produced in a year with the limited capacity for Country X, ceteris paribus.Table 1.3Production Possibilities for Brushes and CombsCombinationNumber of combsOpportunity Cost(Foregone brushes)Number of brushesOpportunity Cost (Foregone combs)J4 0NAK3 10 L2 17 M1 21 N0NA23 On the basis of Table 1.3, in the production range of 21 to 23 brushes the opportunity cost of producing one more comb in terms of brushes is
A. 4. B. 1/21. C. 1/2. D. 21/23.
Firms who effectively differentiate their product from their competitors' products do so by having:
A. perceived, but not real, differences in product design. B. real, not just perceived, differences in product design. C. real or perceived differences in product design. D. None of these statements is true.