Why does a sports car cost more than a mountain bike?
A) because sports car manufacturers are greedier than mountain bike manufacturers
B) because sports cars are priced higher in order to make them attractive as status symbols
C) because more scarce resources are required to produce a sports car than to produce a mountain bike
D) because mountain bike manufacturers know that their customers have relatively low incomes
C
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Traveler's checks are included in M1 but not in M2
Indicate whether the statement is true or false
All else equal, ________ is likely to have a greater ________ effect on the net present value than ________.
A) expensing the investment; positive; straight-line deprecation B) expensing the investment; negative; straight-line deprecation C) straight-line deprecation; positive; immediate depreciation D) straight-line deprecation; positive; expensing the investment
Which of the following is considered a service in the calculation of GDP?
A. Manufacturing automobiles. B. Tax preparation. C. Constructing new homes. D. Manufacturing reclining chairs.
At an output of 6, ATC = $30, MC = $25, MR = $25. At that output the firm is
A. maximizing its profits. B. minimizing its losses. C. operating at its break-even point. D. operating at its shutdown point.