As world economies start to recover from the 2008 financial crisis and firms expect profits to increase,
A) the U.S. short-run aggregate supply curve immediately will shift rightward.
B) investment will increase and there will be a movement up along the aggregate demand curve.
C) the price level in the U.S. will decrease as firms increase investment.
D) both investment and aggregate demand will increase.
D) both investment and aggregate demand will increase
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Which of the following statements is true?
A) Rational economic agents maximize more than just monetary income. B) An individual does not require information to make optimal decisions. C) The principle of optimization is only accurate when it comes to making monetary decisions. D) It is not necessary to consider the risks of a particular alternative while making an optimal decision.
The Coase Theorem is the proposition that if the number of involved parties is low, if property rights ________ and transactions costs are ________, then private transactions are efficient
A) are nonexistent; low B) exist; high C) are nonexistent; high D) exist; low
Which of the following doesn’t characterize the properties of a dollar:
A. changes in value over time. B. can reflect the cost of living in terms of the goods it can purchase. C. has no worth itself, but represents goods we can buy with it. D. it has a fixed value that doesn’t change over time.
Firms may experience diseconomies of scale when
a. they are too small to take advantage of specialization. b. large management structures are bureaucratic and inefficient. c. there are too few employees, and managers do not have enough to do. d. average fixed costs begin to rise again.