The value of any business is largely determined by the size of the dividend it pays its shareholders
Indicate whether the statement is true or false
F
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If smartwatches are considered substitutes for smartphones, the decline in the price of smartphones would, all else equal,
A) decrease the demand for smartwatches. B) increase the demand for smartwatches. C) increase the quantity of smartwatches demanded. D) decrease the quantity of smartwatches demanded.
If consumer tastes shift away from mustard and toward salsa, then the
a. demand curve for salsa will shift to the left b. demand curve for mustard will shift to the right c. quantity demanded of salsa will decrease d. quantity demanded of mustard will increase e. demand curve for salsa will shift to the right
Which of the following statements reflect sound economic reasoning?
a. Foreign competition will reduce the wealth of Americans. b. If it is more economical to acquire a good through trade than by self-production, it makes sense to trade for it. c. If domestic production of a good will employ lots of people, the good should be produced domestically. d. Higher tariffs will increase the total volume of international trade.
What is the value added by all the firms A–E from the production of a product as described below? What did each firm add separately in value and what does it total?
