Capital expenditures:
a. are easily reversible
b. are forms of operating expenditures
c. Affect long-run future profitability
d. Involve only money, not machinery
e. none of the above
c
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For a perfectly competitive firm that should continue to operate in the short run, loss is minimized where
a. MR is maximized b. MR = MC c. P < MC d. MR < MC e. MR > ATC
If exports and imports both rose, but exports rose more than imports, a. AD would decrease
b. AD would increase. c. AD would be unaffected. d. AD could either increase or decrease.
Which of the following is a reason that consumption depends on current income, and not just on total wealth?
A) Banks will not always lend money to those who want to consume more than their income. B) The anticipation of future financial distress makes some people reluctant to borrow. C) Low income people may prefer to postpone some consumption until later years, when their incomes are higher. D) all of the above E) none of the above
Imagine a situation where the deposits at state chartered banks would be insured by a state insurance fund and deposits at nationally chartered banks would be insured by FDIC. How would you expect both depositors and banks would react?
What will be an ideal response?