A technological change that positively affects business expectations will:
a. cause a rightward shift of the investment demand curve
b. cause a leftward shift of the investment demand curve.
c. cause an upward movement along the investment demand curve.
d. cause a downward movement along the investment demand curve.
e. make the investment demand curve upward sloping.
a
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The basic idea behind moral hazard is that ________
A) some economic transactions impose an additional cost on society B) some economic transactions give rise to an additional benefit to society C) people tend to take more risks if they do not have to bear the costs of their behavior D) people do not reveal their true preference for goods that are non-excludable in consumption
Using the data in the above table, the average fixed cost of producing 9 units per day is
A) $2.22. B) $5.00. C) $5.55. D) $20.00.
A change that increases the expected profit from holding a unit of product in inventory, ________ the expected marginal revenue curve and ________ the profit-maximizing quantity to hold in inventory.
A) increases; decreases B) decreases; increases C) increases; increases D) decreases; decreases
A country with limited official reserves is better off pursuing fixed exchange rates.
Answer the following statement true (T) or false (F)