Opening trade between nations enables each nation's consumption possibilities to go beyond the confines of its own production possibilities curve
a. True
b. False
Indicate whether the statement is true or false
True
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The paramount goal of a firm is to
A) maximize profit. B) maximize sales. C) maximize total revenue. D) minimize costs. E) force its competitors into bankruptcy.
In May, Jones thinks the upcoming summer's corn crop will be much lower, and the November corn price will be much higher than most people expect. To act on his belief, Jones would
A) sell November corn futures. B) buy November corn futures. C) simultaneously buy and sell November corn futures. D) profit only by waiting to see if his original conclusion was correct.
Answer the following statement true (T) or false (F)
1) The limited money income of consumers results in a so-called budget constraint. 2) A rational consumer will cease purchasing a product at that quantity where marginal utility begins to diminish. 3) When a consumer is maximizing total utility, he or she cannot increase total utility by reallocating expenditures among different products. 4) When the price of a product falls, the income effect induces the consumer to purchase more of it while the substitution effect prompts her to buy less.
What is the pure rate of interest?
What will be an ideal response?