The production possibilities frontier slopes downward and to the right because of limited resources
a. True
b. False
Indicate whether the statement is true or false
True
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A movement along the AE curve arises from a change in ________, and a movement along the AD curve arises from a change in ________
A) the price level; the price level B) real GDP; investment C) real GDP; the price level D) the price level; investment E) investment; the price level
A company's capital structure is made up of 40% debt and 60% common equity (both at market values). The interest rate on bonds similar to those issued by the company is 8%. The cost of equity is estimated to be 15%. The income tax rate is 40%
The company's weighted cost of capital is A) 11.5%. B) 12.2%. C) 10.9%. D) 8.9%.
For an increasing cost industry, the long-run supply curve has a(n) _____ elasticity of supply
a. infinite b. negative c. positive d. zero
If firms are producing at a profit-maximizing level of output where the price is equal to the average total cost:
A. average total cost must be minimized. B. economic profits must be zero. C. accounting profits must be positive. D. All of these are true.