Answer the following questions true (T) or false (F)
1. A higher bond price indicates a lower cost of new external funds.
2. Mutual funds are a good and relatively inexpensive way for individual investors to diversify.
3. Accounting profit is the sum of a firm's revenue and its opportunity costs.
1. TRUE
2. TRUE
3. FALSE
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Investment, as defined by economists, would not include which of the following? Ford
A) adds 1,000 new cars to inventories. B) builds another assembly plant in the United States. C) buys a new robotic machine (from a plant in Ohio) to assemble cars. D) buys U.S. government bonds.
As economists use the term, capital means
a. such things as machinery and equipment. b. such things as money and credit. c. the profits that come from hiring and using labor and natural resources. d. All of these.
The command system relies on prices set by firms on the basis of consumer demands
a. True b. False Indicate whether the statement is true or false
Even when two goods are perfect substitutes one can sell at a premium over the other depending on the tastes and preferences of the consumers
Indicate whether the statement is true or false