An increase in market demand for a product in a competitive market will raise profits for firms currently in the market

a. true
b. false


Answer: a. true

Economics

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A student comments to his roommate that the only way he will be able to pass his final exams is to not sleep for the next three days. This statement suggests that

A) society should value good grades more highly than sleep because students can catch up on their sleep once final exams are over. B) there is a trade-off between studying and sleep. C) students are more concerned about good grades than good health. D) society should value sleep more highly than good grades.

Economics

Suppose a coupon bond with a par value of $1000 is currently priced at $950 and has a coupon of $40. Which of the following is true?

A) current yield > coupon rate B) current yield < coupon rate C) coupon rate has risen D) coupon rate has declined

Economics

The more complicated a task, the greater the ability to economize on ________ through specialization and centralized control

a. transaction costs b. marginal cost c. sunk cost d. fixed cost

Economics

The decision about how much money to hold is an application of the:

A. equilibrium principle. B. cost-benefit principle. C. principle of comparative advantage. D. scarcity principle.

Economics