If a town begins requiring builders to build on one-acre lots, instead of on smaller quarter-acre lots, the supply curve for new homes will
A. shift to the right.
B. become flatter.
C. shift to the left.
D. become steeper.
Answer: C
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Suppose some people like national defense and others are offended by it -- i.e. some people derive positive marginal benefit and others derive negative marginal benefit. Efficiency then demands that national defense is produced until the sum of the positive marginal benefits is equal to the (absolute value) of the negative marginal benefits.
Answer the following statement true (T) or false (F)
In the figure above, the efficient amount of output is
A) 20 units per day. B) 40 units per day. C) 60 units per day. D) 80 units per day.
What is a firm's markup? What does it show?
What will be an ideal response?
When an investor buys a corporate bond
A) the face value of the bond is equal to what the investor paid for the bond. B) the investor becomes part owner of the corporation. C) the principal of the bond is a loan to the corporation. D) the interest made on the bond represents the bondholder's limited liability in the company.