The Timeline of Production Would Indicate

question 6

Multiple Choice

The timeline of production would indicate:

• A) supply creates its own investment.
• B) first production occurs, then profit represents a residual, and this residual is saved.
• C) firms first invest (which is borrowing), then they produce, and then the revenue they receive is used to pay resource suppliers and lenders.
• D) firms first save (which is lending), then they produce, and then the revenue they receive is used to lend even more.
• E) real interest rates rise faster than nominal interest rates because production occurs before income is received by the firm.

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Definitions:

Total Utility

The overall satisfaction or pleasure a consumer receives from consuming a particular quantity of goods and services.

Slice of Pie

Often used metaphorically to represent a portion or share of something, such as profit or resources.

Marginal Utility

The additional satisfaction or utility received by a consumer from consuming one more unit of a good or service.

Macaroni And Cheese

A popular dish made typically from cooked macaroni pasta and a cheese sauce, often with added ingredients such as breadcrumbs or meat.