The so-called Paradox of Thrift that became quite obvious in the Great Recession of 2007- 2009 refers to all of the following, except:
A. Saving may be virtuous for the individual, but it could be bad for the economy as a whole
B. Consumers becoming thriftier may help long-term growth, but ironically reduces current
output
C. In trying to spend less now, consumers will end up spending more later on
D. As individuals try to save more, the whole group may end up saving less as total income
declines
C. In trying to spend less now, consumers will end up spending more later on
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Suppose that for each firm in the competitive market for potatoes, long-run average cost is minimized at $0.20 per pound when 500 pounds are grown. The demand for potatoes is Q = 10,000/p
If the long-run supply curve is horizontal, then how much will consumers spend, in total, on potatoes? A) $0 B) $500 C) $10,000 D) $50,000
The United States is an example of
A) a customs union. B) a free trade area. C) an economic union. D) a common market.