Refer to the information provided in Figure 9.2 below to answer the question(s) that follow.
Figure 9.2Refer to Figure 9.2. If demand for wheat is D3, then in the long run
A. the firm will exit the industry.
B. the firm will shut down.
C. new firms will enter the industry, and the current firms will expand production.
D. None of the above is correct.
Answer: C
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When a firm’s earnings rise, its stock prices will tend to fall.
Answer the following statement true (T) or false (F)
Consistency for the sample average can be defined as follows, with the exception of
A) converges in probability to . B) has the smallest variance of all estimators. C) . D) the probability of being in the range ± c becomes arbitrarily close to one as n increases for any constant c > 0.
The point at which the burden of a tax ultimately rests is known as the
a. effect of the tax. b. impact of the tax. c. incidence of the tax. d. direction of the tax.
What, according to economist Donald Boudreaux in the "Last Word" section of the chapter, best explains why the market system is not a random, chaotic mess?
A. There is active cooperation among private property owners and government officials to correct the excesses of a market economy B. The roundabout methods of production allocate resources from consumers to producers in an orderly fashion C. Government planning limits the chaos, and the government regulates economic activity to create stability in the market D. Private property rights encourage mutual accommodation that leads to an arrangement of resources that is productive