If the electronics market is experiencing a shortage in the supply of mobile phones being sold at a cost that buyers are more than willing to pay for, then:
a. the selling price is higher than the equilibrium price
b. the equilibrium price is higher than the selling price.
c. the quantity demanded is less than the quantity supplied.
d. the shortage could be eliminated by lowering the price.
b
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Because money growth is a major component determining the inflation rate, in order to forecast inflation we should forecast actions by the
A) Congress. B) President. C) Fed. D) Office of the Treasury. E) U.S. Mint.
If the interest rate increases, the
a. cost of saving will increase b. cost of borrowing will increase c. firm should decrease the amount of capital it owns by selling capital d. firm should acquire more capital e. supply of loanable funds will increase
If the product derived from the last dollar spent on labor is greater than the product derived from the last dollar spent on capital, then the firm
A. should use less labor and more capital to minimize costs. B. is minimizing costs. C. should use more labor and less capital to minimize costs. D. should increase the price paid to labor and decrease the price paid to capital to minimize costs.
The demand for new capital depends on the interest rate.
Answer the following statement true (T) or false (F)