Growth promotion through capital deepening is constrained due to
A. slow population growth.
B. the income effect.
C. the principle of diminishing returns.
D. the principle of opportunity cost.
Answer: C. the principle of diminishing returns.
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Use the following table to answer the next question.Total ProductTotal Fixed CostTotal Variable Cost0$150$0115050215075315010541501455150200615027071503608150475915062010150800Based on the cost data given, which of the following price-quantity tables correctly represents the firm's short-run supply schedule?(1)(2)(3)(4)PQsPQsPQsPQs$201$200$200$203302300300304453454450455604605600606755756755757956957956958120712081207120915081509150815010
A. Table (1) B. Table (2) C. Table (3) D. Table (4)
For many products, such as fast foods, a variety of prices can be found, but sellers with higher prices can expect to sell their products because
A) arbitrage will quickly eliminate price differences. B) their demand is perfectly inelastic. C) firms differentiate products in many ways, for example, higher-priced fast food restaurants may offer better service. D) consumers are not sensitive to prices.
If the probability of a bond default increases because corporations begin to suffer large losses, then the default risk on corporate bonds will ________ and the expected return on these bonds will ________, everything else held constant
A) decrease; increase B) decrease; decrease C) increase; increase D) increase; decrease
The classical economists espoused
A. the crude version of the quantity theory of money. B. the sophisticated version of the quantity theory of money. C. both the crude and sophisticated quantity theories of money. D. neither the crude nor sophisticated quantity theories of money.