Firms need to borrow for operating purposes because they
A. need constant bailouts.
B. are always in debt.
C. need to pay for goods and services before they will have revenue from their sales.
D. need to pay for goods and services after they have sold them.
Answer: C
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Which of the following lies primarily within the realm of macroeconomics?
A. a study of the demand for gasoline B. a study of how tax cuts stimulate aggregate production C. an analysis of supply and demand conditions in the electricity market D. a study of the impact of "mad cow" disease on the price of beef worldwide
Which one of the following is true of a market for used cars?
A. A consumer typically overestimates the probability of getting a lemon (low-quality car). B. As buyers become more pessimistic about their chances of buying a high-quality car, the price of used cars (both low-quality and high-quality) decreases. C. There is a public information problem. D. The willingness to pay is less than the willingness to accept.
You are likely to learn about ________ in your macroeconomics class
A) the price elasticity of demand for a good B) the average revenue and cost curves of a firm C) the Law of Diminishing Marginal Utility D) the annual growth rate of an economy's output
A perfectly competitive firm is a price taker. Therefore, it faces a
a. perfectly elastic supply curve for its output b. perfectly elastic demand curve for its output c. perfectly inelastic supply curve for its output d. perfectly inelastic demand curve for its output e. unit-elastic demand curve for its output