The "home" equilibrium will provide the highest level of consumer satisfaction from domestic resources whenever:
a. the marginal products of labor are equal.
b. capital and technology are not factors in the decision of what to produce.
c. perfect competition in product and labor markets exists.
d. Adam Smith's "invisible hand" is not an interfering factor.
Ans: c. perfect competition in product and labor markets exists.
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As president and CEO of MegaWorld industries, you must decide on some very risky alternative investments:
Project Profit if Successful Probability of Success Loss if Failure Probability of Failure A $10 million .5 -$6 million .5 B $50 million .2 -$4 million .8 C $90 million .1 -$10 million .9 D $20 million .8 -$50 million .2 E $15 million .4 $0 .6 The highest expected return belongs to investment A) A. B) B. C) C. D) D.
How can one "beat the market"?
What will be an ideal response?
Kodak introduced to the marketplace a digital camera that uses no film but that takes photos that can be shown on personal computers. This is an example of:
A. economies of scale. B. product innovation. C. process innovation. D. venture capital.
Ceteris paribus, if the Fed sells bonds through open market operations, the money
A. Demand curve should shift rightward. B. Supply curve should shift leftward. C. Supply curve should shift rightward. D. Demand curve should shift leftward.