If scientific research produces a technological breakthrough in the production of computer memory, then
a. business costs will increase, profits will fall, and production will decrease.
b. business costs will fall, but profits will also fall, and production will decrease.
c. business costs will fall, profits will improve, and production will increase.
d. profits will increase because businesses will cut back production.
C
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For the U.S. federal government, mandatory spending refers to
A) spending that is not subject to Congress's annual appropriations process. B) spending that never changes in amount from year to year. C) spending on federal employee salaries. D) spending that must be authorized by Congress each year.
Changes in all of the following shift the LM curve except
a. the price level. b. income. c. the money supply. d. money demand. e. all of the above shift LM curve.
Fixed costs are best defined as
a. costs that do not vary with output. b. costs that are at a minimum when output approaches the firm's capacity. c. the amount that one more unit of output adds to total costs. d. costs that decline as output increases.
Consider the game tree in Figure 12.8. If Store B's payoff in the second rectangle from the top were $250 instead of $100, the outcome of the game will be that:
A. both stores choose to advertise. B. both stores choose not to advertise. C. Store A chooses to advertise but Store B chooses not to advertise. D. Store B chooses to advertise but Store A chooses not to advertise.