A downward movement along the investment demand curve would be caused by a(n):
A. increase in the expected rate of return on investment caused by an increase in business confidence.
B. decrease in the expected rate of return on investment caused by a decrease in business confidence.
C. increase in the rate of interest.
D. decrease in the rate of interest.
Answer: D
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Which of the following is the best example of opportunity cost?
A) a company's expenditures on a training program for its employees B) the rate of return on a company's investment C) the amount of money that a company can earn by depositing excess funds in a money market fund D) the profit that a company forgoes when it decides to drop one product line in favor of another one
An economy is operating with optimum efficiency if
a. the price of the product is greater than marginal cost. b. the production of more of commodity A entails the production of less of commodity B. c. marginal cost of output is greater than marginal utility of output. d. an increase in output would result in a decrease in average cost per unit.
If the MPP of an additional unit of labor is 4 units per hour, product price is constant at $5 per unit, and the wage rate is $19 per hour, then
A. The employer should lower wages and accept less employment of labor. B. The additional unit of labor should be employed. C. Product price must be reduced if profits are to be made. D. The additional unit of labor should not be employed because it costs more than it is worth.
Briefly describe the three-step process for the monopolist.
What will be an ideal response?