Which would be considered an investment according to economists?
a. The selling of IBM corporate bonds
b. The purchase of a new machine by Ford
c. The purchase of stock in MacDonald's
d. The buying of shares of Janus mutual funds
b. The purchase of a new machine by Ford
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Explain why the expenditure multiplier is greater than 1
What will be an ideal response?
Three friends stay in an apartment. Their landlord offers to air-condition the apartment if they pay for the installation charges. Although they all want an air-conditioner, none of them say so. This is an example of the ________
A) free-rider problem B) paradox of thrift C) tragedy of commons D) paradox of plenty
Is it possible for the average fixed cost curve to have the shape depicted above? Explain
What will be an ideal response?
Suppose a monopoly producer is also a monopsonist in the labor market. Demand for the output is p = 100 - Q. The production function is Q = L, and the labor supply curve is w = 10 + L. How much labor does the firm hire? What wage is paid?
What will be an ideal response?