Because ________ in the government budget deficit increase the real interest rate, budget deficits can ________ firm investment

A) decreases; increase
B) increases; decrease
C) decreases; decrease
D) increases; increase


B

Economics

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The purchase of a computer by a person for household use would be counted in what category of GDP?

A. The purchase is included as part of investment. B. The purchase is not included in GDP at all, but the value of services the computer gives is included in consumption each year. C. The purchase is counted as consumption if the computer was manufactured in the United States; otherwise, it is ignored. D. The purchase is always counted as consumption.

Economics

Small-denomination time deposits are less than

A) $1,000. B) $1 million. C) $100,000. D) $10,000.

Economics

If Happy Feet chooses to Ad and Best Nails then chooses to No Ad, Happy Feet earns ________ million in net profit and Best Nails earns ________ million.



Happy Feet wants to prevent Best Nails from entering the nail salon market. The above game tree illustrates the different strategies and corresponding payoffs for the two firms. Both Happy Feet and Best Nails have the same strategies of advertising (Ad) or not advertising (No Ad). The payoffs represent net profit in millions.

A) $4; $1
B) $5; $1
C) $2; $3
D) $1; $4

Economics

Since producers must be compensated for the rising opportunity cost that accompanies increases in output,

a. the law of demand applies to most markets b. supply curves usually slope downward c. demand curves usually slope downward d. supply curves usually slope upward e. technical inefficiency would not exist in the long run

Economics