Which of the following is an accurate description of the aggregate demand curve?
a. It is the sum of all individual demand curves for all products
b. It shows all price levels at which firms' unit costs equal their percent markups.
c. It is the curve decided upon by the voters.
d. It shows the relationship between firms' unit costs and their percentage markups.
e. It shows the equilibrium level of GDP associated with price level.
E
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Isocost lines
A) represent the combinations of inputs that have the same marginal cost. B) represent the combinations of inputs that have the same total cost. C) are the inverse of the isoquant lines. D) represent supply and demand for inputs at a given cost.
The Coase theorem asserts that, in the presence of externalities,
a. private economic actors sometimes can reach a bargain that produces an efficient outcome. b. private economic actors always can reach a bargain that makes everyone better off. c. private solutions cannot be very effective. d. corrective taxes cannot be very effective.