In a closed economy, equilibrium real Gross Domestic Product (GDP) occurs where
A) the C + I + G line crosses the 45-degree line. B) saving exceeds planned investment.
C) planned expenditures exceed national income. D) all of these.
A
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Fertility refers to:
A) the ratio of deaths in an area to the population of the area. B) the number of children per adult or per woman of childbearing age. C) the ability of an individual to read or write in at least one language. D) the average period that an individual may be expected to live.
A perfectly competitive firm is earning an economic profit when total fixed costs increase. Assuming the firm does not shut down, in the short run the firm will
A) charge a higher price. B) produce more output so the extra revenue will cover the increased costs. C) produce less output to decrease total costs. D) continue producing the same quantity as before but will make less economic profit. E) continue producing the same quantity as before and continue making the same economic profit as before.