Although some tastes do change over time, economists believe that tastes are relatively stable. If tastes were not mostly stable, then we
a. could not even draw a supply curve
b. could not reasonably make the other-things-constant assumption required for demand analysis
c. would not have any concerns about still drawing demand curves
d. could no longer eat food
e. would be basing economic models on real life instead of making impossible assumptions
B
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Using the figure above, show the effect on the real interest rate and the quantity of loanable funds of an increase in expected profit
What will be an ideal response?
If a perfect competitor is losing money it must be in the _________.
Owners of a firm want the managers to make business decisions which will
A. maximize the value of the firm. B. maximize expected profit in each period of operation. C. maximize the market share of the firm. D. both a and b are correct when revenue and cost conditions in one time period are independent of revenues and costs in future time periods.
Capital goods yield benefits
A. over their life span. B. as soon as the investment decision is made. C. before they are put to use. D. in the present only.