Assuming supply is held constant, an increase in demand for a product will cause an increase in the equilibrium price and the amount bought and sold
a. True
b. False
Indicate whether the statement is true or false
True
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________ are the owners of a corporation
A) Bondholders B) The board of directors C) Stockholders D) Top management
The smaller the marginal propensity to save, other things constant, _____
a. the smaller the marginal propensity to consume b. the larger the multiplier c. the smaller the multiplier d. the flatter the consumption function e. the steeper the saving function
If the sellers in a market are aware of their strategic interdependence, then
a. each firm bases its pricing and output decisions on the monopoly model b. each firm, when making pricing or output decisions, must consider the reactions of its competitors c. the firms have little incentive to collude in their pricing and output decisions d. the firms undertake little advertising because they cannot recoup the cost through higher prices e. no firm is able to earn above-normal profit in the long run
An assumption of economists' standard theory of choice is that:
A. preferences are given and are not shaped by society. B. individuals maximize marginal utility. C. it is costly for a consumer to make optimal choices. D. individuals use rules of thumb to make decisions.