Which of the following statements is correct?
A. Because it is subject to change, and frequently does, consumer and business confidence has only a minimal impact on future economic activity.
B. Because it has historically remained steady, consumer and business confidence has only a minimal impact on future economic activity.
C. Consumer and business confidence is extremely important and can have a great impact on future economic activity.
D. Consumer confidence is extremely important and can have a great impact on future economic activity. The same is not true of business confidence.
Answer: C. Consumer and business confidence is extremely important and can have a great impact on future economic activity.
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The slope of the per-worker production function diminishes as the amount of capital per-worker increases. This is a reflection of the law of _____
a. increasing marginal returns b. diminishing marginal returns c. constant marginal returns d. first diminishing then increasing marginal returns e. demand
A local cable company has its rates set at P = $15 by a regulatory commission. Its current output is 10,000 households and its costs are as follows: ATC = $17; AVC = $14; and MC = $15 . From this, we can tell that this is
a. a fair price, and the firm earns a normal profit b. a fair price, and the firm earns an economic loss c. marginal cost pricing, and the firm earns a normal profit d. marginal cost pricing, and the firm earns an economic loss e. the same price that an unregulated monopolist would charge
Firms in a monopolistically competitive market will advertise because
A. of the significant differences in their product over their competitors. B. the elasticity for their product is inelastic. C. they want to differentiate their products. D. they want to increase the elasticity of the demand curve.