Which of the following observations is true?
a. Free markets will achieve all of society's goals.
b. The ability to buy goods is divided equally among consumers.
c. The market deals with efficiency in production through the profit motive.
d. The market system encourages firms to use inputs wastefully.
c
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Bananas and apples are substitutes. When the price of bananas falls, and a technological advance in apple production occurs at the same time
A) the equilibrium price of apples rises and the equilibrium quantity of apples falls. B) the equilibrium price of apples rises and the equilibrium quantity of apples might rise or fall. C) the equilibrium price of apples rises and the equilibrium quantity of apples rises. D) the equilibrium price of apples falls and the equilibrium quantity of apples might rise or fall.
The Carolina Christmas Tree Corporation grows and sells 500 Christmas trees. The average cost of production per tree is $50 . Each tree sells for a price of $65 . The Carolina Christmas Tree Corporation's total revenues are
a. $7,500. b. $25,000. c. $32,500. d. $67,500.
Based on the graph showing the effects of an investment tax credit or a technological change, enacting an investment tax credit would ______.
a. create a negative real interest rate
b. have little or no effect on the real interest rate
c. increase the real interest rate
d. decrease the real interest rate
Empirical studies show that entry into markets increases both price and quantity of goods supplied.
Answer the following statement true (T) or false (F)