Which of the following is an example of an economic trade-off that a firm has to make?
A) deciding what profit margin it desires for its products
B) whether or not consumers will buy its products
C) whether it is cheaper to produce with more machines or with more workers
D) deciding why consumers want its products
C
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A reduction in the cost of cable TV subscriptions will ________ the ________ for televisions
A) decrease; supply B) decrease; demand C) increase; supply D) increase; demand E) None of the above is correct.
If the government sets a maximum price at which a good or service can be sold, it thereby creates
A. a free market price. B. a price floor. C. a black market price. D. a price ceiling.
The supply of labor to the individual firm in a perfectly competitive market is
A) perfectly inelastic at the current equilibrium employment level. B) perfectly elastic at the current market clearing wage rate. C) downward sloping. D) equal to the marginal revenue of output.
Assume Company X deposits $100,000 in cash in commercial Bank A. If no excess reserves exist at the time this deposit is made and the reserve ratio is 20 percent, Bank A can increase the money supply by a maximum of:
A. $50,000. B. $180,000. C. $80,000. D. $500,000.