If the stock market booms and people feel wealthier (in a closed economy), then the real interest rate ________ and investment ________.
A. rises; declines
B. falls; declines
C. rises; increases
D. falls; increases
Answer: A
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Refer to the table below. Suppose the profit for each unit of paper product is $3.00 and the profit for each unit of lumber is $13.50 and Big Oaks is producing the profit-maximizing quantity of lumber and paper products. If the profit from each unit of lumber increases from $13.50 to $15.00 and the profit for each unit of paper products does not change, to maximize profit, Big Oaks should produce
a ________ proportion of lumber and produce ________ units of paper products and lumber.
Big Oaks can produce either paper products or lumber with each tree that they harvest. Because Big Oaks can adjust the amount of paper products and lumber they produce from the harvested trees, paper products and lumber are produced in variable proportions. The above table summarizes Big Oaks production possibilities from each harvested tree.
A) smaller; less
B) smaller; more
C) greater; more
D) greater; less
Safety Training One task of Mega Manufacturing's Human Resource Department is to perform periodic safety training at Mega's various plants. HR is run as a profit center with each plant manager paying for this safety training via a transfer price
Recently, some of the plant managers have been hiring outside firms for their safety training. HR has complained to corporate that they will have to lay off staff if this continues but the plant managers reply that they are maintaining their acceptable safety record at a lower cost. What does this imply about the transfer price?
At equilibrium, quantity demanded equals quantity supplied
a. True b. False Indicate whether the statement is true or false
The method of least squares
A. minimizes the distance between the population regression line and the sample regression line. B. can be used to estimate the slope parameters of a linear equation. C. can be used to estimate the explanatory variables in a linear regression equation. D. all of the above