Most goods are normal goods, and their demand shifts to the left when income rises.
Answer the following statement true (T) or false (F)
False
Most goods are normal goods; as incomes rise, the demand for most goods will rise. However, the demand will shift to the right.
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A firm's total cost in the short run is the sum of its fixed cost plus its variable cost plus its marginal cost
Indicate whether the statement is true or false
It is generally true that per capita GNP is:
a. negatively correlated with labor productivity. b. positively correlated with the standard of living. c. negatively correlated with the life expectancy rate. d. uncorrelated with the literacy level. e. positively correlated with the rate of population growth.
When a commercial bank borrows from a Federal Reserve bank,
a. the commercial bank's reserves are reduced. b. the commercial bank's lending ability is increased. c. the money supply automatically declines. d. the net worth of the bank will decline, indicating that the bank is having financial difficulties.
Shares in XM Radio currently sell for $20. If the satellite it plans to launch works well, the share value will increase by $35. If the satellite fails to function, the share price will fall by $5. The expected return of the stock is
a. 25%. b. 50%. c. 75%. d. 100%.