Firms react to unplanned inventory reductions by
A. reducing planned investment.
B. increasing consumption.
C. increasing output.
D. reducing output.
Answer: C
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The national debt as a percentage of GDP has remained roughly constant since the end of World War II
a. True b. False Indicate whether the statement is true or false
Exhibit 2-6 Production possibilities curve data A B C D E F Capital goods150 140 120 90 50 0 Consumer goods 0 20 40 60 80 100 In Exhibit 2-6, the concept of increasing opportunity costs is represented by the fact that:
A. the quantity of capital goods produced must be less than 150. B. the quantity of consumer goods is constant for each change in the quantity of capital goods produced. C. greater amounts of capital goods must be sacrificed to produce each additional unit of consumer goods. D. the amount of consumer goods produced must be greater than zero.
Recall the Application about the impact tariffs have on lower income households to answer the following question(s). Economists have found that tariffs in the United States fall most heavily on lower-income consumers. In the United States, tariffs are very high on textiles, apparel items and footwear, and within these categories the highest tariffs fall on the cheapest products. In general, to protect U.S. industries, tariffs are highest on labor-intensive goods.If the tariffs on textiles, apparel items, and footwear mentioned in the Application were replaced by equivalent voluntary export restraints (VERs), who would benefit the most?
A. low-income consumers B. high-income consumers C. the U.S. government D. the foreign manufacturer
Most employees ________ pay taxes on the value of health insurance provided by employers, and most people ________ get a tax break when buying individual health insurance policies
A) do; do B) do; do not C) do not; do D) do not; do not