An increase in the money supply tends to reduce investment.
a. true
b. false
Ans: b. false
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Refer to Scenario 10.2. Suppose that in addition to the tax, a business license is required to stay in business. The license costs $1000. What is the profit maximizing level of output?
A) 0 B) 90 C) 95 D) 100 E) none of the above
The input efficiency condition:
A. holds if at least one pair of firms share the same marginal rate of technical substitution between every pair of inputs. B. holds if at least one pair of consumers share the same marginal rate of substitution between two goods. C. holds if every pair of firms share the same marginal rate of technical substitution between every pair of inputs. D. holds if every pair of firms share the same marginal rate of substitution between two goods.
Arguably the most damaging economic consequence of inflation is:
A. high prices. B. the uncertainty it can create. C. the adjustment of sticky wages. D. the erosion of value of real assets.
Unregulated markets will tend to
a. rapidly deplete any natural resource. b. naturally conserve any depletable natural resource by pushing up its price every year by a constant dollar amount. c. naturally conserve a depletable resource by pushing up its price at a constant rate every year. d. deplete a resource unless new supplies are found.