The field of finance primarily studies
a. how society manages its scarce resources.
b. the implications of time and risk for allocating resources over time.
c. firms' decisions concerning how much to produce and what price to charge.
d. how society can reduce market risk.
b
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Centralizing decisions is efficient if people at lower levels of an organization have knowledge to which those at higher levels can add little
Indicate whether the statement is true or false
With a monopolist's outcome, producer surplus is:
A. lower than that of a competitive market. B. higher than that of a competitive market. C. the same as that of a competitive market. D. Any of these is possible.
Exhibit 8-18 A typical firm in a perfectly competitive market
In Exhibit 8-18, assume the perfectly competitive firm is in long-run equilibrium and there is an increase in demand. As a result, the firm in the short run will increase output along its:
A. short-run average total cost curve B. B. short-run marginal cost curve B. C. long-run average cost curve. D. none of these because the firm shuts down.
All other things being equal, in the absence of public policy, an economy producing more than its sustainable capacity will eventually
a) reduce its long run capacity by wearing out its capital and depleting its natural resources b) increase its long run capacity to meet the demand c) experience wage and price increases and cutbacks in supply until output is at capacity d) export the excess output to other countries e) exhibit improved technology