When an investment project generates output that is valued more highly than the value of the resources required for its production,
A) entrepreneurs seeking profit will have little incentive to undertake such projects.
B) entrepreneurs will have to be subsidized by the government if they are going to earn a profit.
C) it will be unprofitable to undertake such a project.
D) undertaking the project will create wealth.
D) undertaking the project will create wealth.
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Banks create money when they
A. add to their reserves in the Federal Reserve Bank. B. accept deposits of cash. C. sell government bonds. D. exchange demand deposits for loans to businesses and individuals.
A very high fixed cost and a relatively low marginal cost is associated with
A) every type of good or product. B) an information product. C) a persuasive good. D) an experience good.
If butter and margarine are substitute goods, an increase in the price of butter is most likely to:?
Which of the following is a TRUE statement about monopoly and perfect competition?
A) Price is always higher and output higher under monopoly than under perfect competition. B) Because costs do not depend on market structure, price is usually higher and output is always lower under monopoly than perfect competition. C) If there are substantial economies of scale, price may be lower and output greater under monopoly than under perfect competition. D) If there are substantial economies of scale, price may be lower and output greater under monopoly than under perfect competition, and price may be below marginal cost instead of equal to marginal cost.