When the economy is at equilibrium,

A. There are no leakages.
B. Inventories must equal zero.
C. Leakages equal aggregate demand.
D. Leakages equal injections.

Answer: D

Economics

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Why is national defence provided by the government?

a) Free riders make it difficult for private markets to supply the socially optimal quantity. b) It is impossible for private markets to produce public goods. c) If the good were produced in private markets, most likely too much of the good would be produced. d) Products provided by the government can be produced more efficiently.

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Explain why any firm must generate enough revenue to cover its variable costs in the short run

What will be an ideal response?

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