One way that government can encourage the production of goods or services that have external benefits is to subsidize the good or service
Indicate whether the statement is true or false
TRUE
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“Common stock” is the type only sold to small investors.
Answer the following statement true (T) or false (F)
Beginning at the horizontal axis intercept, as a consumer moves upward along the budget line, he will find that
a. the marginal utility per dollar spent on the vertical axis good increases b. the marginal utility per dollar spent on the horizontal axis good increases c. the marginal utility per dollar spent on the horizontal axis good decreases d. the marginal utilities per dollar spent on both goods increase e. the marginal utilities per dollar spent on both goods remain constant along that particular budget line
At an interest rate of 6 percent, if an investment project was expected to yield $1,000 per year (to be received at year end) for each of the next three years, profit-maximizing decision makers would undertake the project only as long as the cost remained less than
a. $1,000. b. $2,577. c. $2,673. d. $3,000.
Which of the following is not a necessary condition for effective price discrimination?
A. The seller must be able to separate buyers based on their elasticities. B. The seller must not be a price taker. C. Consumers must not be able to resell the products to other consumers. D. Consumers must tell the seller how much they are willing to pay for the product.