As the interest rate rises, the cost of a given investment project __________ and businesses invest __________
A) rises; more
B) rises; less
C) falls; more
D) falls; less
B
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In Econland population increased from 1 million to 1. 1 million, the number of employed workers increased from 500,000 to 600,000, but average labor productivity decreased from $20,000 per worker per year to $19,000 per worker per year. Total output in Econland ________ and the average standard of living ________.
A. increased; increased B. decreased; decreased C. increased; decreased D. decreased; increased
All economic questions arise because we
A) want more than we can get. B) want more than we need. C) have an abundance of resources. D) have limited wants that need to be satisfied.
Larry spends all his $800 monthly income on pizza and gasoline. The price of pizza is $4 a slice, and the price of gasoline is $2 per gallon
If Larry buys 150 slices of pizza per month, his budget constraint will allow him to buy ________ gallons of gas per month. A) 100 B) 80 C) 120 D) 200
A profit-maximizing firm in a monopolistically competitive market can earn positive, negative, or zero profits in the short run
a. True b. False Indicate whether the statement is true or false