If producers incorrectly set the price of their product too high:
A. a surplus will result.
B. equilibrium will result.
C. a shortage will result.
D. the industry will die out soon.
Answer: A
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Uncertainty costs arise from inflation because inflation makes long-term planning ________ so people respond by ________ investment
A) less difficult; not changing B) less difficult; increasing C) more difficult; increasing D) more difficult; decreasing E) more difficult; not changing
Suppose that at the current level of output, price = $12, MC = $14, AVC = $7, and ATC = $9. Which of the following is TRUE?
A) The firm should decrease output. B) The firm should shut down. C) The firm should increase output. D) The firm should maintain the current level of output.
A . If Orde Windgate withdraws $4,00 . from the First Bank of Chicago and deposits it in a new account at the Second Bank of Chicago, explain how much money the Second Bank of Chicago can create if the legal reserve requirement is 10 percent. b. Will this transaction increase the amount of money that the banking system as a whole can create? Explain
IMF refers to the International Market Fund
Indicate whether the statement is true or false