If Bristol-Myers Squibb discovered a miracle drug that cured some forms of cancer, which theory would apply to the profits it earned?
A. Reward for innovation
B. Reward for risk-taking
C. Monopoly profits
D. All of choices are true.
D. All of choices are true.
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The production possibilities frontier slopes downward and to the right because of limited resources.
Answer the following statement true (T) or false (F)
If the Fed wants to move the economy down and to the right along the Phillips curve, what must it do?
a. Increase the rate at which the aggregate supply curve shifts upward b. Decrease the rate at which the aggregate demand curve shifts rightward c. Increase the rate at which the aggregate demand curve shifts rightward d. Increase the rate at which the aggregate demand curve shifts leftward e. Decrease the rate at which the aggregate supply curve shifts upward
A change in input prices has no impact on the budget line
a. True b. False Indicate whether the statement is true or false
In 2007, as stock prices in general were falling, many investors began switching their funds into purchasing bonds. Surveys suggest that many of these investors did not understand the basic relationship between bond prices and interest rates. Using a numerical example, illustrate how an increase in the demand for bonds would affect the interest rate paid on bonds