The notion of business investment being related to interest rates is shown when interest rates are
A. higher because more projects (where businesses borrow capital to start new lines of business) are profitable.
B. higher because people are less likely to buy expensive goods on installments.
C. higher because people are more likely to buy expensive goods on installments.
D. higher because fewer projects (where businesses borrow capital to start new lines of business) are profitable.
Answer: D
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Which of the following will happen if consumption in an economy falls?
A) Firms' revenue fall. B) Labor supply falls. C) Mortgage defaults fall. D) Asset prices rise.
An increase in income results in an outward shift of an indifference curve
Indicate whether the statement is true or false
All the supply of peppermint oil is produced from mint plants grown in one county by several competitive growers (the number of growers is not limited). The quality of land in the county varies greatly
Would you expect the long-run market supply curve to slope upward, downward, or remain constant? Why?
Suppose the price of a product is less than its average variable cost. When the firm's fixed obligations are completely ended, it will now most likely:
a. make an economic profit. b. go out of business. c. expand to a bigger operation. d. continue to be shut down. e. break even.