When Tobin's q is greater than one, ________
A) a unit of a firm's stock (equity) is worth more than a unit of the firm's capital
B) a new unit of capital has more value than a new unit of stock (equity)
C) installed capital is worth less than new capital
D) a unit of capital that a firm owns has more value than a unit it might buy
D
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The money supply can be increased by decreasing the required reserve ratio.
Answer the following statement true (T) or false (F)
In the production possibilities model, the vertical axis measures ________ and the horizontal axis measures ________
A) people's wants; the quantity of a good or service B) the quantity of a good or service; time C) the price of a good or service; the price of another good or service D) the price of a good or service; the quantity of the good or service E) the quantity of a good or service; the quantity of another good or service
For a perfectly competitive firm,
a. marginal revenue is the same as the market price b. marginal revenue equals total revenue c. to earn an economic profit, it must be larger than its competitors d. price always exceeds average total cost e. marginal cost is always equal to average cost
Consumer wants and consumer demands are the same thing
Indicate whether the statement is true or false