According to the law of supply, what will motivate firms to increase their quantity supplied of a product?
A. Fixed cost
B. Price
C. Supply
D. Production cost
Answer: B
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Cartels tend to break down unless they can obtain government assistance because cartel members will typically try to
A) charge higher prices than the prices agreed upon. B) include sunk costs in their prices. C) lower their costs below the agreed-upon levels. D) sell more than their quotas. E) do all of the above.
During the short-run period of the production process, a firm is: a. unable to vary any of its factors of production
b. able to vary only some of its factors of production. c. able to vary all of its factors of production. d. able to vary the size of its plant.
The gross national product (GNP) measures ________.
A) the overall market value of final goods and services produced in a country in a year B) the overall gross profit a country earns in a year C) a country's overall income resulting from production in a year D) a country's overall expenditures in a given year E) a country's overall increase in profitability from one year to the next
An asset is liquid if
A. it is backed by a government guarantee. B. it can be exchanged for other items of value without high transaction costs. C. it earns interest. D. All of these are correct.