Profit-maximizing firms want to maximize the difference between
A. marginal revenue and marginal cost.
B. total revenue and marginal cost.
C. marginal revenue and average cost.
D. total revenue and total cost.
Answer: D
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An increase in disposable income shifts the supply of loanable funds curve
A) leftward and decreases the real interest rate. B) leftward and increases the real interest rate. C) rightward and decreases the real interest rate. D) rightward and increases the real interest rate.
You try to explain the number of IBM shares traded in the stock market per day in 2005. As an independent variable you choose the closing price of the share. This is an example of
A) simultaneous causality. B) invalid inference due to a small sample size. C) sample selection bias since you should analyze more than one stock. D) a situation where homoskedasticity-only standard errors should be used since you only analyze one company.
The corporate form of business started to become more prevalent in the United States economy in the late 1700s
Indicate whether the statement is true or false
A simultaneous increase in inflation and decrease in economic growth in a country can be associated with:
a. a decrease in aggregate demand with no change in aggregate supply. b. an increase in aggregate demand and aggregate supply. c. an increase in aggregate supply with no change in aggregate demand. d. a decrease in aggregate supply and aggregate demand. e. a decrease in aggregate supply with no change in aggregate demand.