The equation for the income multiplier is
a. 1/(1 – MPC)
b. 1 – MPC
c. 1 – (MPC – MPS)
d. 1/MPC
e. 1/(1 – MPS)
A
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Which of the following four firms would most likely be part of a perfectly competitive market?
A) Village Pizza sells NY style pizza and hard-to-find microbrews in a college town. B) The WaveHouse is the only place in San Diego where you can ride an indoor 10 foot wave. C) Mark sells the tomatoes he grew in his backyard at the local farmers market. D) Amara Massage specializes in pre- and post-natal massage.
Firms in perfect competition will leave the industry if they
a. suffer short-run losses b. suffer losses, even if they are covering variable costs in the short run c. suffer long-run losses d. earn a normal profit e. earn a zero economic profit
Which of the following is not true with regard to mutual funds? a. Some mutual funds allow investors to invest in all stocks in a given market
b. Mutual fund returns are greater than those for an individual who selects his/her own stocks. c. They allow individuals to spread risk across many different companies. d. Investors gain access to the services of a financial expert.
Explain the difference between a "change in quantity supplied" and a "change in supply."
What will be an ideal response?