The law of supply states that:
A. producers should only produce what they can sell.
B. producers should only sell the items when the price is right.
C. there is a positive relationship between price and quantity supplied, ceteris paribus.
D. producers are legally required to make necessary items available in the marketplace.
Answer: C
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Are bank lines of credit to small firms collateralized?
A) All of them are. B) Some of them are, especially if the firm is risky. C) Some of them are, especially if the firm is safe. D) None of them are.
In which market should you begin your analysis if immigration of low-skilled workers increases?
a. Foreign exchange market, with a shift in the demand for domestic currency b. Real loanable funds market, with a shift in the demand for real loanable funds c. Foreign exchange market, with a shift in the supply of domestic currency d. Real goods market with, a shift in aggregate supply e. Real loanable funds market, with a shift in the supply of real loanable funds
If a country's trade deficit declines, but it does not go into surplus, then:
A. it must be producing more than it is consuming. B. it must be buying more assets from foreigners. C. it must be selling fewer assets to foreigners. D. its consumption must be rising relative to its production.
Suppose the total cost of producing T-shirts can be represented as TC = 50 + 2q. Which of the following statements is TRUE at all levels of production?
A) MC = AVC B) MC = AC C) MC > AFC D) All of the above.