An investor who wants to diversify his portfolio will buy only bonds when both stocks and bonds are expected to yield better returns
a. True
b. False
Indicate whether the statement is true or false
False
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One reason that variable factors of production tend to show diminishing returns in the short run is that:
A. there is only so much that can be produced using additional variable inputs when some factors of production are fixed. B. capital equipment is often idle in the short run. C. large firms cannot effectively manage their resources. D. the cost of employing additional resources increases as firms employ more of those resources.
If MV rises from 180 to 270,
A. PQ will fall by 50%. B. PQ will stay the same. C. PQ will rise by 50%. D. PQ will rise by 100%.
Without the use of money, workers in an economy would:
A. probably specialize less B. be far more productive C. become more specialized D. have to spend a lot less time trading
Suppose that an economy produces 500 units of output. It takes 10 units of labor at $15 a unit and 4 units of capital at $50 a unit to produce this output. The per-unit cost of production is:
A. $1.42. B. $0.40. C. $1.24. D. $0.70.