According to the law of supply, a rise in the price of a good or service almost always leads to an increase in the quantity supplied of that good or service, while a fall in price will decrease the quantity supplied
a. True
b. False
Indicate whether the statement is true or false
True
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Making a loan is generally:
A. less risky and more potentially rewarding than buying stock. B. more risky and less potentially rewarding than buying stock. C. less risky and less potentially rewarding than buying stock. D. more risky and more potentially rewarding than buying stock.
Which of the following is the best example of "creative destruction"?
a. The imprudent use of a credit card by a family that already has a high level of debt. b. The virtual elimination of the film camera by the digital camera. c. The failure of a business because of poor management. d. The failure of a business because of higher cost resulting from government regulation.
Given the budget line in the above figure, which of the following combinations of pizza and milk are affordable?
A) 0 pizzas, 12 gallons of milk B) 2 pizzas, 2 gallons of milk C) 4 pizzas, 4 gallons of milk D) All of the above combinations are affordable.
In which of the following is the relationship of price (P) to marginal cost (MC) such that the gains to society as a whole from producing additional marginal units will be greater than the costs?
a. P = MC b. P > MC c. P > MC d. P / MC