If firms reduce the rate at which inventories are rising,
A. firms are less likely to reduce production when sales fall.
B. fluctuations in GDP are likely to be more dramatic.
C. an increase in unplanned inventory investment becomes more likely.
D. All of the above will occur if firms reduce the rate at which their inventories accumulate.
Answer : A. firms are less likely to reduce production when sales fall.
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Moving downward along a linear (straight-line) downward sloping demand curve, the
A) slope is constant. B) price is constant. C) quantity is constant. D) elasticity is constant. E) None of the above answers is correct.
All else equal, when oil prices decrease, people are ________ to look for oil substitutes. This will ________ the number of years it will take to deplete the stock of oil
A) discouraged; increase B) discouraged; decrease C) encouraged; increase D) encouraged; decrease
Refer to the scenario above. A change in the probability of breakdown to 10 percent will:
A) increase the net present value to $135.65. B) lead to a negative net present value. C) decrease the net present value to $16.02. D) decrease the net present value to $10.
Which of the following is a consequence of minimum wage laws?
A) Producers have an incentive to offer workers non-wage benefits such as health care benefits and convenient working hours rather than a higher wage. B) Employers will be reluctant to offer low-skilled workers jobs with training. C) All workers benefit when the minimum wage is increased. D) Low-skilled workers benefit because minimum wage increases the number of jobs providing low-skilled workers with training.