An unexpected increase in inventories has
A. no effect on future production.
B. a negative effect on future production.
C. a positive effect on future production.
D. a negative effect on current production.
Answer: B
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In a market economy, what encourages firms to develop new products and production processes?
A) contracts B) insurance C) patents D) accounting rules
Explain how it might be possible to discuss costs of production of a good or service without using monetary values
What will be an ideal response?
Which of the following is the worst-case scenario for a consumer?
a. Perfect competition b. Perfect price discrimination c. Single-price monopoly d. Peak load pricing
Which one of the following statements about tariffs and quotas is correct?
A. Only the tariff produces revenues for the government. B. Only the quota will cause domestic production to increase. C. Only the quota will cause domestic prices paid by consumers to increase. D. Only the quota will cause the quantity of imports to decrease.