The demand for labor and other factors of production typically decline in a recession because those factors
A. Are derived from the demand for final output, which also declines in a recession.
B. Are no longer offered for sale in factor markets.
C. Have become more expensive than before the recession.
D. Have become relatively scarcer than before the recession.
Answer: A
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The indifference curve between expected return and the standard deviation of return for a risk-averse investor
A) is downward-sloping. B) is upward-sloping. C) is horizontal. D) is vertical. E) can take any shape.
The Keynesian-cross model is a complete macroeconomic model
a. True b. False Indicate whether the statement is true or false
Selling at a price that is only slightly above the firm’s cost of production is called predatory pricing.
Answer the following statement true (T) or false (F)
All of the following statements are true about entrepreneurship except:
A. The entrepreneur assembles needed resources. B. The entrepreneur risks her or his own money. C. The entrepreneur reaps the profits or suffers the losses of the enterprise he or she creates. D. The term entrepreneur is synonymous with the term inventor.