A motorcycle manufacturer produced 8,000 motorcycles, but sold only 6,500 of them. We would classify the remaining 1,500 motorcycles as
A. a loss to the firm.
B. a factor of production.
C. part of the firm?s tangible capital.
D. part of the firm?s intangible capital.
Answer: C
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In the foreign exchange market, if the demand for dollars permanently decreases, the Fed can maintain the exchange rate at its old equilibrium level indefinitely by buying dollars
Indicate whether the statement is true or false
When one party suffers negative external effects due to the actions of another party, a lawsuit may not lead to the efficient outcome if:
A) property rights are not clearly assigned. B) the parties have incomplete information. C) the legal costs of the lawsuit are too high. D) All of the above
When two variables move in opposite directions, the curve relating them is
a. upward sloping, and we say the variables are positively related. b. upward sloping, and we say the variables are negatively related. c. downward sloping, and we say the variables are positively related. d. downward sloping, and we say the variables are negatively related.
In the long run, monopolistic competitive firms are considered to be operating inefficiently because their
A) economic profits are positive. B) economic profits are zero. C) average total costs are not at a minimum. D) marginal costs are rising.