Why does a sports car cost more than a truck?
A. because truck manufacturers know that their customers have relatively low incomes
B. because sports car manufacturers are greedier than truck manufacturers
C. because more scarce resources are required to produce a sports car than to produce a truck
D. because sports cars are priced higher in order to make them attractive as status symbols
Answer: C
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A) selling foreign exchange B) buying and selling the domestic currency C) raising the foreign interest rate D) buying foreign exchange
European agricultural practices perfectly served the colonists farming in the New World
Indicate whether the statement is true or false
The more profits are reinvested into the firm, the
A) less there is available to distribute to bondholders. B) less there is available to distribute to stockholders. C) more the firm will be able to raise in sales of new issues to stock. D) more bonds the firm will sell in order to pay their required dividends to preferred stockholders.
If people buy less flowers at every price when their incomes fall, then
a. flowers are a normal good. b. the demand for flowers is positively sloped. c. demand for flowers has increased. d. the price of flowers has increased. e. there has been a decrease in population that changed demand.