In general, a firm will be likely to invest as long as the
A. profits realized from the investment are sufficient to cover the interest payments.
B. firm can sell bonds directly to the public instead of borrowing from a bank.
C. firm doesn't have to borrow any money to make the investment.
D. interest rate is less than the inflation rate.
Answer: A
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The Federal Reserve System performs many functions but its most important one is
A. providing for check clearing and collection. B. acting as fiscal agent for the U.S. government. C. issuing currency. D. controlling the money supply.
Suppose beer producers in Munich became aware of the low price of one barrel of beer in the domestic market relative to that in the United States. What will be the impact of this price difference?
a. Beer production in Munich will decline. b. Price of beer in the domestic market will increase. c. Beer production in the U.S. will increase. d. Beer consumption in the domestic market will increase.
A tariff is a tax on ________ goods that is designed to ________
a. exported; protect domestic industries b. exported; hurt foreign industries c. imported; make domestic consumers pay more d. imported; protect domestic industries e. domestic; discourage imports
Even when a firm produces the level of output at which price equals marginal cost, it should shut down if its total revenue is less than its:
A. total cost. B. fixed cost. C. marginal cost. D. variable cost.