The supply of bonds curve slopes upwards because
A) at higher prices, bonds pay higher interest which makes them more attractive to suppliers.
B) lower prices raises the cost of borrowing which makes them less attractive to suppliers.
C) at lower prices, bonds pay higher interest which makes them more attractive to suppliers.
D) higher prices raise the cost of borrowing which makes them less attractive to suppliers.
Ans: B) lower prices raises the cost of borrowing which makes them less attractive to suppliers.
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If a firm's goal is to maximize revenue, it will price its product to correspond to the unit-elastic segment of its demand curve
Indicate whether the statement is true or false
Joey's Lawncutting Service rents office space from Joey's dad for $300 per month. Joey's dad is thinking of increasing the rent to $400 per month. As a result Joey's marginal cost of cutting grass will
A) increase by $100 divided by the amount of grass cut. B) increase by $100. C) decrease by $100. D) not change.
When diminishing returns are present,
a. total output increases at an increasing rate b. total output begins to decrease c. the marginal physical product curve begins to rise d. total output increases at a decreasing rate e. it's an indication that the firm is using too much labor
According to the definitions of national saving and private saving, if Y, C, and G remained the same, an increase in taxes would
a. raise both national saving and private saving. b. raise national saving and reduce private saving. c. leave national saving and private saving unchanged. d. leave national saving unchanged and reduce private saving.