If a positive permanent supply shock were to occur, the resulting equilibrium would be a:
A. higher level of output at lower prices.
B. lower level of output and prices.
C. higher level of output and prices.
D. lower level of output at higher prices.
Answer: A
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Refer to the scenario above. If the investor plans to invest a sum of $4,000, the net present value of Option B is:
A) -$1,536.34. B) -$2,322.12. C) $157.46. D) $1,800.79.
Which of the following will not cause a shift in the demand curve for a good?
A. Income. B. Taste. C. The price of the good itself. D. The prices of other related goods.
An insecure monopoly can deter another firm from entering the market by setting its quantity equal to:
A. the zero profit quantity. B. the zero profit quantity - the minimum entry quantity. C. the minimum entry quantity. D. the zero profit quantity + the minimum entry quantity.
________ reflects household willingness to pay, and ________ reflects the opportunity cost of the resources needed to produce a good.
A. Demand; price B. Price; marginal cost C. Price; average total cost D. Marginal utility; price