Minneapolis business Rogue Chocolatier sells specialty chocolate bars with a high cocoa content. Most chocolate companies use already processed chocolate to craft their sweets
But Rogue buys raw cocoa beans, and roasts and grinds them until they're in a liquid state and then runs the chocolate through a big squat machine with rollers. Which statement is TRUE for Rogue? A) Raw cocoa beans are a variable factor of production and the machine is a fixed factor of production.
B) Both processed chocolate and raw cocoa beans are variable factors of production.
C) Processed chocolate is a variable factor of production and the machine is a fixed factor of production.
D) Processed chocolate and raw cocoa beans are variable factors of production and the machine is a fixed factor of production.
A
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A) occurs when managers have more incentive to maximize profits than the stockholders-owners do. B) in financial markets helps to explain why equity is a relatively important source of finance for American business. C) would not arise if the owners of the firm had complete information about the activities of the managers. D) explains why direct finance is more important than indirect finance as a source of business finance.
If the ____ is/are fixed, a change in nominal income is equivalent to a change in real income
a. price level b. interest rates c. tastes and preferences d. future expectations
Governments typically intervene in markets
a. to bring the market price to its equilibrium level b. to shift the price away from its equilibrium level c. only to increase the market price d. only to increase the market output e. because in some markets, supply and demand do not generate their own equilibrium price
If the central bank in a foreign country increases its interest rate, then the IS curve of the domestic economy will:
A) shift to the right. B) shift to the left. C) not shift at all. D) shift to the right because U.S. exports will decrease.