A decrease in the price level will most likely have what effect on the consumption function?
A. It will shift upward.
B. It will shift downward.
C. It will cause movement downward along the function.
D. It will cause movement upward along the function.
Answer: A
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Which of the following is the most liquid asset?
A) season tickets to the Yankees' games B) the cash that your Aunt Ursula stuffs in her mattress C) a $5,000 6-month certificate of deposit (time deposit) D) one hundred shares of IBM stock
What are the factors that determine the costs of doing business in a country?
What will be an ideal response?
If a business owner decided to expand her business but rather than borrowing money from a bank used her own funds, then
A) she would be unable to earn a normal profit. B) there is no cost associated with the expansion. C) she would forego the opportunity to earn interest on the money. D) the amount of her funds she used is an explicit cost. E) the amount of her funds she used is part of her normal profit.
Comment on the following statement: "When average product and marginal product are equal, marginal product is at its maximum."
What will be an ideal response?