Identify the impact of an increase in the inventory stock during a year
a. Consumption spending will decrease thereby reducing the GDP.
b. The GDP of a country should decrease by the amount of the increase in inventory.
c. The capital investment in a country will increase.
d. Neither the capital investment nor the GDP will change.
e. The GDP of a country should increase by the amount of the increase in inventory.
e
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Both the demand for and supply of cars changes in France. You observe that the quantity of cars does not change but the price rises. Thus, which of the following occurred?
A) Demand increased and supply decreased by an equal amount. B) Demand and supply increased by an equal amount. C) Demand and supply decreased by an equal amount. D) Demand increased by a larger magnitude than supply decreased. E) Demand decreased and supply increased by an equal amount.
Investment, as defined by economists, would include the purchase of a
A) Treasury bond. B) corporate bond. C) share of stock in Facebook. D) cargo van by a delivery company.
Assume that the economy has two sectors, milk and orange juice, and that both sectors are initially in long-run competitive equilibrium. Milk and orange juice are substitute goods
Trace the effects of a change in preferences that increases the demand for orange juice.
A monopolist faces the (inverse) demand for its product: p = 50 - 2Q. The monopolist has a marginal cost of 10/unit and a fixed cost given by F
a. Assume that F is sufficiently small such that the monopolist produces a strictly positive level of output. What is the profit-maximizing price and quantity? b. Compute the maximum profit for the monopolist in terms of F. c. For what values of F will the monopolists profit be negative?