Tag: income determination

Quizzes (3) Questions (24)

Questions Related to income determination

Multiple choice economics income determination unemployment and employment generation the short run fixed price analysis of the product market liquidity preference and profit

Inventory investment refers to investment in fixed capital assets. 

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Inventory investment refers to the change in the stock of unsold goods, raw materials, and work-in-progress held by firms, whereas fixed capital investment refers to assets like machinery and buildings.

Multiple choice economics income determination unemployment and employment generation the short run fixed price analysis of the product market liquidity preference and profit

Sweezy's model does not explain ______________.

  1. price rigidity

  2. price determination

  3. output determination

  4. kinked demand determination
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The Sweezy's kinked demand curve model advocates the behavior of oligopolistic organizations when the price and output are determined. Therefore, Instead of laying emphasis on price-output determination, the model explains the behavior of oligopolistic organizations when price and output is determined.