Once decision makers fully adjust to an increase in prices,
a. the natural rate of unemployment will decline.
b. competitive forces will restore the usual relationship between product prices and costs.
c. producers' profits will exceed their normal level.
d. producers will expand output beyond the economy's potential.
B
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You own shares in a well-managed and diversified company. If a booming economy decreases investors' concerns about market risk, then the price of your shares will ________, holding other factors constant.
A. decrease. B. not change. C. increase. D. either increase or decrease.
Suppose that the price of a pound of potatoes increases from $0.75 to $0.90 . Use the midpoint formula to calculate the percentage change in price
What will be an ideal response?
When there is multicollinearity in an estimated regression equation,
a. the coefficients are likely to be small. b. the t-statistics are likely to be small even though the R2 is large. c. the coefficient of determination is likely to be small. d. the problem of omitted variables is likely. e. the error terms will tend to have a cyclical pattern.
What involves taking the risks that are necessary to seek out business opportunities?
a. Invention b. Benchmarking c. Averaging d. Entrepreneurship