Consider a BMW automobile plant. If the price of BMWs increase by 10 percent and the money wage rate and other costs ________, there will be ________
A) increase by 10 percent; an increase in BMWs profits
B) do not change; an increase in BMW's production and profit
C) increase by 10 percent; an increase in BMWs production
D) do not change; no change in production
B
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Producer surplus is the sum of the profits earned by all firms in a market
Indicate whether the statement is true or false
If an up-scale jewelry maker sells its products to retailers with the explicit condition that the retailers may not resell the products below a specified price, this is an example of ________.
A) monopolization B) market division C) price fixing D) resale price maintenance
If the quantity of loanable funds supplied is less than the quantity demanded, then there is a
a. shortage of loanable funds and the interest rate will fall. b. shortage of loanable funds and the interest rate will rise. c. surplus of loanable funds and the interest rate will fall. d. surplus of loanable funds and the interest rate will rise.
The situation in which the money a person receives does not increase even though prices rise.
a. inflation b. economic system c. fixed income d. deflation