As the multiplier process is working on the demand side,
A. firms will meet the additional demand without raising prices.
B. firms will meet the additional demand only by raising prices.
C. firms will not meet the additional demand.
D. the multiplier process will cease creating demand.
Answer: B
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Some sales managers are talking shop. Which of the following quotations refers to a movement along the demand curve?
A) "Since our competitors raised their prices our sales have doubled." B) "It has been an unusually mild winter; our sales of wool scarves are down from last year." C) "We decided to cut our prices, and the increase in our sales has been remarkable." D) none of the above
Which of the following is true about the Federal Reserve and its ability to prevent recessions? The Federal Reserve
A) can fine tune the economy and realistically hope to keep the economy from experiencing recessions. B) cannot realistically fine tune the economy and has little to no effect on the magnitude and length of recessions. C) does not try to eliminate recessions, but instead focuses on preventing inflation. D) cannot realistically fine tune the economy, but seeks to keep recessions shorter and milder than they would otherwise be.
If you have $100 in an account that offers "2x" margin, you can effectively buy:
A. $200 worth of stocks. B. $1,000 worth of stocks. C. $100 worth of stocks. D. $2,000 worth of stocks.
When changes to a company’s output do not affect its long-term average total cost curve, that company is experiencing ______.
a. constant returns to scale b. economies of scale c. diseconomies of scale d. variable returns to scale