When people anticipate a company’s earnings will drop, prospective stockholders want to pay ______ for a stock, and current stockholders ______ to sell.
a. less; are eager
b. more; are eager
c. less; are reluctant
d. more; are reluctant
a. less; are eager
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All of the following are strategies a firm with market power can adopt to increase it profits over time except:
A) mergers with, and acquisitions of, competing firms. B) erecting barriers to entry. C) setting price equal to the marginal costs of production. D) influencing the regulatory process.
An artificially scarce good is:
A. rival in consumption and excludable. B. not rival in consumption, but excludable. C. rival in consumption, but not excludable. D. not rival in consumption and not excludable.
The "war on terror" waged by the United States:
A. shifted the production possibilities curve to the right. B. caused the United States to shift from "defense goods" to "civilian goods." C. shifted the production possibilities curve inward. D. caused the perceived marginal benefit curve for "defense goods" to shift out.
Total planned real expenditures measured along the aggregate demand curve are made up of
A. consumption spending, factor payments, investment spending, and net export spending. B. consumption spending, income, government spending, and net export spending. C. consumption spending, saving, investment spending, and government spending. D. consumption spending, investment spending, government spending, and net export spending.