Investment demand is downward sloping because
A) an increase in investment demand causes interest rates to fall.
B) at lower interest rates, firms will undertake more investment.
C) at lower interest rates, firms will undertake less investment.
D) none of the above.
B
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According to the criteria of cost-effectiveness, an abatement standard is set optimally if
a. that standard is benefit-based b. it is set where the MSB of abatement is equal to ?(MACmkt + MCE). c. the standard is reached at minimum cost d. it is set at the point where MSB of abatement equals zero e. it is set at the point where MSC of abatement equals zero
The difference between the lowest price a firm would have been willing to accept and the price it actually receives from the sale of a product is called
A) marginal revenue. B) price differential. C) profit. D) producer surplus.
Refer to Table 2-17. What is James's opportunity cost of making a tricycle?
A) 2 tricycles B) 3/4 of a wagon C) 1/2 of a wagon D) 1/2 of a tricycle
Firms can acquire access to savings indirectly through ________
A) issuing securities B) borrowing from banks C) the payment of taxes to the federal government D) the depositing of funds in depository institutions