If actual output is less than equilibrium output, firms will ________ output to keep from ________ inventories

A) increase; accumulating
B) increase; depleting
C) decrease; depleting
D) decrease; accumulating


B

Economics

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Suppose manufacturers introduce a new model car to replace a car currently included in the CPI basket. The price of the new car is 10 percent higher than the discontinued model, but the new car has additional safety features and amenities. In this situation the CPI will tend to ________ inflation as a result of ________ bias.

A. accurately measure; substitution B. overstate; quality adjustment C. overstate; substitution D. understate; quality adjustment

Economics

When the U.S. interest rate ________ relative to foreign interest rates, the supply of dollars ________ and the supply curve of dollars shifts rightward

A) rises; increases B) rises; does not change C) falls; decreases D) falls; increases E) rises; decreases

Economics

If you pay $2,000 in taxes on an income of $20,000, and a tax of $2,700 on an income of $30,000, then over this range of income the tax is

A) regressive. B) proportional. C) progressive. D) There is insufficient information to answer the question.

Economics

The manufacturer has put in place a price discrimination policy, where it charges its household customers more per unit than it charges its industrial users. The manufacturer wants to keep the retailer from arbitraging away the profits from the policy. The manufacturer should

a. Vertically integrate into the retail operations in the household market b. Vertically integrate into the retail operations in the industrial market c. Reward the household market retailers for not arbitraging d. All of the above

Economics