If businesses feel more optimistic about the state of the economy, then this change is likely to:
a. Shift the investment demand curve to the right
b. Cause a movement down the investment demand curve
c. Cause a movement up the investment demand curve
d. Shift the investment demand curve to the left
a. Shift the investment demand curve to the right
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A bubble happens when:
A. asset prices rise for a long time, even during a recession. B. asset prices rise higher and faster than can be explained by the fundamentals. C. asset prices rise faster than can be tracked with traditional statistical tools. D. asset prices rise higher than experts have predicted they would.
Why do people specialize?
A) Specialization allows people to do a variety of job tasks. B) Specialization usually increases productivity. C) Specialization decreases people's dependence on each other. D) Specialization occurs when people do not want to learn new tasks.
When a perfectly competitive firm is in long-run equilibrium, economic profits
A. are zero. B. are negative. C. are positive. D. may be positive, zero or negative depending upon costs.
Free trade allows the people of a country to consume outside their production possibility frontier.
Answer the following statement true (T) or false (F)