Which of the following arguments is typically associated with classical economists?
A) A market economy is self-correcting and thus will not remain in a recession indefinitely
B) A market economy has stable prices and thus is usually free from inflation
C) A market economy requires a strong government to ensure that the market meets the needs of the people
D) A market economy needs only moderate assistance from the government to avoid an extended recession
E) A market economy eventually results in monopolies in both the input and output markets
Ans: A) A market economy is self-correcting and thus will not remain in a recession indefinitely
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An asset becomes more liquid and hence more money-like
A) as its value relative to other goods approaches zero. B) as its value relative to other goods becomes more uncertain and unpredictable. C) as the cost of exchanging it for other goods approaches zero. D) when it is demanded for its own intrinsic value.
If a firm competing in a price-taker market seeks to maximize profit, the firm should
a. increase output whenever marginal cost is less than average total cost. b. increase output whenever marginal revenue is less than marginal cost. c. choose the output where per-unit profit is greatest. d. increase output whenever price exceeds marginal cost.
Which of the following is an example of a cash outflow from a financing activity?
A. Sale of an intangible asset B. Purchase of treasury shares C. Issuance of bonds D. Distribution of stock dividends
Refer to the information provided in Figure 33.5 below to answer the question(s) that follow.
Figure 33.5Refer to Figure 33.5. The domestic price of oil is $130 per barrel, and the world price of oil is $120 per barrel. If the domestic government imposes a tariff of $10 per barrel, it will
A. export 7 million barrels. B. export 5 million barrels. C. import zero barrels. D. import 5 million barrels.