Industry Y is a perfectly competitive industry. Assume that as a result of changes in other markets there is a twenty percent increase in the price of variable inputs used by firms in industry Y
After all adjustments have taken place, we would expect the equilibrium price in industry Y to: A) decrease and the number of firms to increase.
B) decrease and the number of firms to decrease.
C) increase and the number of firms to increase.
D) increase and the number of firms to decrease.
D
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One major component of money supply M1, demand deposits, is part of a bank's
A. net worth. B. liabilities. C. reserves. D. assets.
McSweed Cleaning Co is a partnership between Tom McSweed and his wife's accountant. The accountant provided $40,000 in initial start-up capital (along with record keeping services) to Tom's provision of day-to-day staff coordination and back-breaking work. They recently shut down with $45,000 in debt after selling the business assets. For how much debt is each partner responsible?
a. $45,000 b. an equal share c. proportionate to their initial investment d. none e. $5,000 for Tom and $40,000 for the accountant
The term market failure refers to
a. a market that fails to allocate resources efficiently. b. an unsuccessful advertising campaign which reduces demand. c. ruthless competition among firms. d. a firm that is forced out of business because of losses.
Which of the following actions by oligopolistic firms indicates that collusion is occurring?
a. They meet to discuss ways to reduce pollution in their industry. b. They jointly host a conference on factory safety initiatives. c. They join a trade association that lobbies for higher tariffs on imported goods. d. They meet to discuss ways to deter new firms from entering their industry.