The main determinants of investment are the interest rates and expected profit.
a. true
b. false
a. true
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A GDP price index of 100 for a year implies that: a. there has been no inflation during the year
b. the price level is three times what it was in the base year. c. the price level is one hundred times what it was in the base year. d. the price level is double what it was in the base year. e. the inflation rate has been 100 percent per year since the base year.
When more workers are hired, the firm's output expands at an increasing rate only
a. when the law of diminishing returns is operative b. under conditions of noncompeting labor markets c. if each worker's MPP is positive d. when technology is improved e. when the gains from specialization of labor outweigh all other factors affecting labor productivity
Industry profits are maximized in the figure below (QM1 = QM2):
A. at the point where r1 = r2. B. only at point QM1. C. only at point QM2. D. on the line segment joining points QM1 and QM2.
Refer to Figure 18-2. If the government imposes an excise tax of $1.00 on every unit sold, the government's revenue from the tax is represented by the area
A) (PaPc × Qa) if the supply curve is S0 and (PbPc × Qb) if the supply curve is S1. B) (PbPe × Qb) under either supply curve. C) (PaPd × Qa) if the supply curve is S0 and (PbPe × Qb) if the supply curve is S1. D) (PaPe × Qa) under either supply curve.