Demand for inputs is a derived demand because:
a. it is derived from the need for income
b. it corresponds to the derived supply of the inputs.
c. the demand for output leads producers to demand inputs used to produce finished goods.
d. of the diminishing marginal product of inputs.
c
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Assume that a Chrysler automobile sells for $15,000 in the United States and that the exchange rate is $1 = €1.3 . For purchasing power parity to hold, the same car should sell in Germany for:
a. €15,000. b. €11,538. c. €19,500. d. €1,538. e. €15,500.
The market mechanism satisfies all consumer desires and maximizes business profits.
Answer the following statement true (T) or false (F)
Individual investors wishing to buy shares of stock in a company will typically purchase them from
A. venture capital firms. B. the company. C. an initial public offering. D. stockbrokers.
Under a "cost-plus" system of hospital reimbursement, hospitals have the incentive to _____
a. minimize expenditures b. purchase the most recent high-tech equipment c. release patients early d. shift away from more expensive surgeries