Financial capital by itself is not a factor of production; instead it is only a paper claim on economic capital
a. True
b. False
Indicate whether the statement is true or false
True
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Assume that the medical screening industry is perfectly competitive. Consider a typical firm that is making short-run losses
Suppose the medical screening industry runs an effective advertising campaign which convinces a large number of people that yearly CT scans are critical for good health. How will this affect a typical firm that remains in the industry? A) The firm's marginal revenue curve and average cost curve shift upwards in response to the increase in market price and advertising expenditure. The firm increases output until it starts breaking even. B) The marginal revenue curve shifts upwards, the firm's output increases along its marginal cost curve, it expands production until it breaks even. C) The firm's supply curve shifts right and its marginal revenue curve shifts upwards as the market price rises and ultimately the firm starts making profits. D) The marginal revenue curve shifts upwards, the firm's output increases along its marginal cost curve, it expands production and eventually starts making profits.
Figure (a) represents the domestic demand and supply of televisions. Suppose free trade is allowed and the current world price of televisions is P1 as shown in Figure (b). Now suppose the domestic government imposes a tariff increasing the domestic price to P2 in Figure (b). This tariff will cause
a. imports to fall from Q2 minus Q1 to Q4 minus Q3.
b. domestic producers to increase their production from Q1 to Q3.
c. domestic consumers to reduce their consumption from Q2 to Q4.
d. All of the above.
It would require the most money to maintain a margin account when
A. You went short at $4.00 and futures are now at $3.00 B. You went long at $4.00 and futures are now at $3.00 C. You went short at $4.00 and offset your position when futures were at $3.50 D. Either A or B as you need margin money whether you are short or long
The illegal acts conducted by companies caught up in recent corporate scandals generally contain the word(s)
A. fraud. B. tax evasion. C. conflict of interest. D. money laundering.