Which of the following types of investments is the most volatile?
A. equipment investment
B. housing investment
C. plant investment
D. inventory investment
Answer: D
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Banks are more willing to lend money to those who have a sizable amount of their own money at risk because
a. They like lending to individuals who usually don't need the money b. Those with their own money at risk are more likely to only propose viable projects to the bank c. Borrowers with their own capital invested are more likely to make payments on any loan that is made. d. Both B&C
The host at a party offers Justin a sixth beer. Justin says, "No thanks, man. The marginal utility of that fifth beer was, like, 20 cents, but the marginal utility of the sixth would be minus 10 cents." If Justin consumes the sixth beer, his total utility will
a. rise by 10 cents. b. reach a plateau and remain constant. c. fall by 10 cents. d. fall below his marginal utility.
Suppose that Figure 7.4 shows a monopolist's demand curve, marginal revenue, and its costs. At the profit-maximizing output level, the monopolist's profit would be:
A. $730. B. $570. C. $320. D. $150.
Suppose the U.S. government imposes a requirement that all passenger cars achieve a minimum fuel economy of 25 miles per gallon combined fuel efficiency. What impact would this have on the price of gasoline? What impact do you think this would have on deaths from traffic accidents?
What will be an ideal response?