Music compact discs are normal goods. What will happen to the equilibrium price and quantity of music compact discs if musicians accept lower royalties, compact disc players become cheaper, more firms start producing music compact discs, and music lovers experience an increase in income?
a. Price will fall, and the effect on quantity is ambiguous.
b. Price will rise, and the effect on quantity is ambiguous.
c. Quantity will fall, and the effect on price is ambiguous.
d. Quantity will rise, and the effect on price is ambiguous.
d
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When the purchase price of an asset is less than its sale price, then there is a
A) budget deficit. B) corporate income tax. C) capital gain. D) capital loss.
A proprietorship is
A) two or more individuals in business together. B) a corporation that is taxed like an individual. C) a business owned by one individual who makes all of the decisions. D) a government-owned franchise.
When you derive the marginal and average product of labor curve,
A. the marginal product of labor cuts the average product labor at the point where the average product of labor is at its minimum. B. the marginal product of labor cuts the average product labor at the point where the average product of labor is at its maximum. C. the marginal product of labor cuts the average product labor at the point where the marginal product of labor is at its minimum. D. the marginal product of labor cuts the average product labor at the point where the marginal product of labor is at its maximum.
If C = 500 + 0.9Y and I = 400, then the equilibrium level of income is
A. 900. B. 1,000. C. 1,800. D. 9,000.