Assume there is a relationship between two variables and the other-variables-held constant assumption (ceteris paribus) is relaxed. We would expect that the line representing this relationship would:
a. change from inverse to direct
b. change from direct to inverse.
c. have a greater number of data points.
d. change its location.
d
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The only types of firms that cannot theoretically practice price discrimination are perfectly competitive firms
a. True b. False Indicate whether the statement is true or false
Diminishing marginal returns means that as you combine more units of a variable resource with a set of fixed resources:
a. the average physical product of the fixed inputs increases at an increasing rate. b. the marginal physical product of the variable input decreases. c. the total output decreases. d. the marginal physical product of the variable input increases at a constant rate. e. the marginal physical product of the variable input increases at a decreasing rate.
Suppose you have put $5,000 into a project that should generate cash inflows of $1,250 for each of the next 5 years. If the interest rate is 8% is this a good investment?
A. Yes, because you will earn a profit of $1,250 dollars in 5 years B. Yes, because the internal rate of return is higher than the interest rate C. No, because the internal rate of return is higher than the interest rate D. No, because the net present value is negative
A market society will always protect the natural environment
a. True b. False Indicate whether the statement is true or false