The evidence of building costs in the 1920s shows that the decline in total construction after 1926
(a) reflected the sharp increase in costs as the boom gathered strength.
(b) occurred when building costs remained stable.
(c) occurred in the presence of sharply falling costs that anticipated the 1929 crash.
(d) was a result of the contractionary monetary policies of the Fed.
(b)
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If a firm's marginal cost exceeds its marginal revenue, then
a. the firm's profit is negative (i.e., the firm is suffering losses). b. the firm should shut down its operations. c. cutting back production will increase the firm's profit. d. the firm should reduce its per-unit cost by increasing its output.
For a common resource, efficiency requires that the ________ equals the ________
A) marginal private benefit; marginal private cost B) marginal social benefit; marginal social cost C) marginal private benefit; marginal social benefit D) marginal social cost; marginal private cost
The following are all the forms of debt finance
A) bond, bank, and official finance B) bond and bank finance C) bond, bank, and portfolio finance D) foreign direct and portfolio investment E) direct investment, stock, and dividends
Profits from speculation arise because of
A) the spread between the bid and ask prices on bonds. B) the illiquidity of markets for derivative instruments. C) the high information costs in markets for derivative instruments. D) disagreements among traders about future prices of a commodity or financial instrument.