When stock prices fall
A) an individual's wealth is not affected nor is their willingness to spend.
B) a business firm will be more likely to sell stock to finance investment spending.
C) an individual's wealth may decrease but their willingness to spend is not affected.
D) an individual's wealth may decrease and their willingness to spend may decrease.
D
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Other things constant, a rise in the number of unskilled immigrants tends to
A) reduce income inequality. B) increase income inequality. C) have no effect on income inequality. D) initially reduce income inequality, but then increase it because immigrants steal jobs from citizens.
In determining the benefit of additional investment to the representative firm, we consider the marginal product of
A) current capital. B) future capital C) current labor. D) future labor.
Refer to Scenario 12.1. What will be the price in the long run if the industry is a Cournot duopoly?
A) $400 B) $600 C) $800 D) $900 E) Competition will drive the price to zero.
Are money and income the same thing?
a. No, money is measured at a point in time and income is measured for a period of time. b. No, money is measured for a period of time and income is measured at a point in time. c. Yes, they are just measured in different ways. d. Yes, the only difference is real versus nominal.