In the classical model, the interest rate will adjust to equate
A) consumption spending with real GDP.
B) saving with investment.
C) export spending with import spending.
D) the economic growth rate with the growth rate of import spending.
B
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Archie can paint 5 backyard fences or repair 2 cars in 8 hours, while Austin can paint 4 backyard fences or repair 2 cars in 8 hours. Identify the correct statement
a. Archie is relatively better in repairing cars. b. Archie is relatively better in painting fences. c. Austin is relatively better in painting fences. d. Archie and Austin are equally good in painting fences. e. Neither Archie not Austin are good in repairing cars.
A monopolist will not be able to receive a positive economic profit at any price-output combination at which
A) marginal cost is less than average total cost when the monopolist has equated marginal revenue and marginal cost. B) the average total cost curve is everywhere above the demand curve. C) marginal cost is less than average variable cost when the monopolist has equated marginal revenue and marginal cost. D) marginal revenue falls at a faster rate than marginal cost increases.