Intense competition in a market will generally lead to
A) dissatisfaction of consumers about the quality and availability of the product.
B) high prices and low quality of the product or service.
C) improvements in the quality of the good or service available to consumers.
D) production inefficiencies and higher costs.
C) improvements in the quality of the good or service available to consumers.
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A change in the federal funds rate ________ the supply of loanable funds, ________ the long-term real interest rate, and ________ investment
A) affects; affects; affects B) does not affect; does not affect; does not affect C) affects; does not affect; affects D) affects; affects; does not affect E) does not affect; affects; does not affect
Suppose capital and labor are perfect substitutes resulting in a production function of q = K + L. That is, the isoquants are straight lines with a slope of -1
Derive the long-run total cost function TC = C(q) when the wage rate is w and the rental rate on capital is r.
Refer to the information provided in Figure 12.4 below to answer the question(s) that follow.
Figure 12.4There are two sectors in the economy, X and Y, and both are in long-run, zero-profit equilibrium at the intersections of S0 and D0.Refer to Figure 12.4. Assume consumer preference changes toward X and away from Y. Ceteris paribus, a new general equilibrium will eventually be reached in sector X with a price of ________ and a quantity of ________.
A. P1; Q0 B. P1; Q1 C. P0; > Q1 D. P0; Q0
The transactions demand for money
A. varies directly with nominal Gross Domestic Product (GDP). B. varies inversely with nominal Gross Domestic Product (GDP). C. has no relationship with nominal Gross Domestic Product (GDP). D. sometimes directly and sometimes inversely with nominal Gross Domestic Product (GDP).