Suppose Sarah Lee Corporation stock has a P/E ratio of 8 . This P/E ratio is relatively
a. low, indicating that buyers may expect earnings to rise.
b. low, indicating that buyers may expect earnings to fall.
c. high, indicating that buyers may expect earnings to rise.
d. high, indicating that buyers may expect earnings to fall.
b
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The government proposes a tax on imported champagne. Buyers will bear the entire burden of the tax if the
A) demand curve for imported champagne is horizontal. B) demand curve is downward sloping and the supply curve is upward sloping. C) demand curve for imported champagne is vertical. D) supply curve for imported champagne is vertical.
Anderson's Bakery sells apple pies in a perfectly competitive market. The market price is $12 per pie. The bakery produces 300 pies per month with a marginal cost of $7 per pie, an average variable cost of $5 per pie, and an average total cost of $7 per pie. In this scenario, Anderson is likely to: a. increase the production of apple pies to maximize profit
b. decrease the production of apple pies but stay open. c. continue to maintain current production levels to minimize losses. d. shut down immediately to minimize losses.
Which of the following countries had the lowest level of output per capita in 1950?
A) United States B) France C) Japan D) United Kingdom
Why do very small differences in annual growth rates amount to big differences in the degree of long-term economic growth?
A) because the slower-growing countries save too much B) because the annual growth rate is compounded over time C) because the faster-growing countries gain a political advantage over poorer countries, and use that advantage for their economic gain D) because the slower-growing countries don't export enough