Economists usually assume that ________ is a fixed input in the _______ run.
A) labor; short
B) capital; short
C) labor; long
D) capital; long
B) capital; short
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The figure above gives your budget line for magazine and CDs per month. Given that your income equals $60 per month, what is the price of a magazine and the price of a CD?
A) The price of a magazine is $12 per magazine and the price of a CD is $6 per CD. B) The price of a magazine is $5 per magazine and the price of a CD is $10 per CD. C) The price of a magazine is $4 per magazine and the price of a CD is $12 per CD. D) It is impossible to tell from the information given.
What does it mean when an economist says that a firm is buying labor in a competitive market?
What will be an ideal response?
Assume Joe invests a total of $10,000 in a company—$5,000 of which is his own money and $5,000 of which he borrowed at a 10 percent interest rate. If the company’s stock value increases by 20 percent in one year at which time Joe sells his shares of the stock, what is Joe’s rate of return on his investment?
A. 10 percent B. 15 percent C. 20 percent D. 30 percent
Ceteris paribus, if the market demand for a product increases, then equilibrium quantity will (be) ____ and equilibrium price will (be) ____
a. increase; indeterminate b. decrease; decrease c. indeterminate; decrease d. increase; increase