A positive (non-zero) price for a good means there is a surplus of that good
a. True
b. False
Indicate whether the statement is true or false
False
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Which of the following statements is true of the Industrial Revolution?
A) It was a gradual process. B) It started in the capital goods industry. C) It was a period of rapid disruption. D) It started in the United States.
The rental price of capital is
a. determined outside the realm of factor markets. b. the price paid to use capital for a limited time period. c. the price paid for ownership of the capital. d. always more than the purchase price.
Adibok knows that it produces and sells high quality athletic shoes. Wurkout knows that it produces and sells low quality athletic shoes. According to the signaling theory of advertising,
a. both Adibok and Wurkout have incentives to spend large amounts of money on advertising for their athletic shoes. b. Adibok has an incentive to spend a large amount of money on advertising for its athletic shoes, but Wurkout does not. c. Wurkout has an incentive to spend a large amount of money on advertising for its athletic shoes, but Adibok does not. d. neither Adibok nor Wurkout has an incentive to spend a large amount of money on advertising for their athletic shoes.
Which of these is an example of depreciation?
(A) A worker's truck breaks down more often after 80,000 miles of driving. (B) An employer fires a worker for repeatedly arriving late to work. (C) A share of stock declines in value over several months. (D) A clothing store owner reduces the price of a belt by $10 to encourage sales.