In the income-expenditure model, inventories are:
A. constantly changing and provide insight into the future of the economy.
B. a long-run event that aids forecasters in understanding where long-run real GDP is.
C. fixed and therefore provide little insight into the direction of the economy.
D. often positive, suggesting that additions to inventory stocks are a long-run goal.
A. constantly changing and provide insight into the future of the economy.
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Refer to the table above. For which of the following choices is the marginal total cost the lowest?
A) Choosing factory Close over factory Far B) Choosing factory Far over factory Very Far C) Choosing factory Very Close over factory Close D) Choosing factory Close over factory Very Far
Utility theory assumes that marginal utility:
a. increases as an individual consumes more of a product. b. decreases as an individual consumes more of a product. c. is zero as long as the individual derives utility from the product. d. is constant as long as the individual derives utility from the product. e. is constant as long as the individual derives satisfaction from the product.