In a free market, a given unit of an input will be used by the firm that
a. earns the largest addition to total profit from the use of that unit of input.
b. has the lowest marginal cost of producing another unit of output.
c. sells its output for the highest price.
d. earns the largest total profit.
a
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Anheuser-Busch purchased the Labatt brewery in Canada and has expanded its market and product offerings. This is an example of:
A. foreign direct investment. B. foreign portfolio investment. C. importing. D. exporting.
The paradox of thrift explains that increased savings by households could actually lower savings for the economy as a whole
a. True b. False Indicate whether the statement is true or false
Suppose you form a legal partnership with your best friend, and she purchases consulting services calling for a $100,000 fee. Your business is broke, and you never wanted the consultants to work for you, just your partner did. For how much of this debt are you legally liable?
a. none of it b. $100,000 c. the proportion reflected by the proportion of the business owned d. only an amount equal to the assets of the business e. $50,000
Between 1998 and 2001, the federal budget was:
a. never in surplus. b. never in deficit. c. in surplus. d. in surplus about as often as it was in deficit.