If Boeing decides to build a new plant using retained earnings,
A. the value of shares of Boeing held by stockholders goes up.
B. the total value of Boeing goes up.
C. it does so only with the shareholders' explicit consent.
D. All of the above are correct.
Answer: D
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Why does a profit-maximizing firm hire labor up to the point where the value of marginal product equals the wage rate?
What will be an ideal response?
When using rational expectations, forecast errors will, on average, be ________ and ________ be predicted ahead of time
A) positive; can B) positive; cannot C) negative; can D) zero; cannot
In the figure above, the shift from the short-run Phillips curve SRPC0 and the long-run Phillips curve LRPC0 to the short-run Phillips curve SRPC1 and the long-run Phillips curve LRPC1 is the result of ________ in the expected inflation rate and
________ in the natural unemployment rate. A) a decrease; no change B) no change; an increase C) an increase; an increase D) an increase; no change E) a decrease; a decrease
Which of the following is prerequisite of successful market economies?
A. the existence and enforcement of property rights B. a tax system that redistributes income from the rich to the poor C. the ability of the government to appropriate economic profits beyond a certain amount to ensure equality in income distribution D. a military presence to ensure political freedom