A consumer price index of 110 for a given year indicates that prices in that year are 10 percent higher than prices in the base year
a. True
b. False
Indicate whether the statement is true or false
True
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If a company's stock is perceived to be more risky than average, what will happen to their equity cost of capital? Explain using the capital asset pricing model
What will be an ideal response?
Which of the following best explains why marginal cost eventually increases as output increases?
a. economies of scale occur b. average cost increases c. total cost increases d. marginal product decreases e. fixed cost is constant
If the wage rate is fixed at a certain level, the:
a. total wage cost curve is horizontal. b. total wage cost curve is a straight upward sloping line. c. MP must be constant. d. total wage cost curve will increase at an increasing rate. e. total wage cost curve will increase at a decreasing rate.
The good for which neither the principle of mutual excludability nor the principle of rivalry applies is referred to as a:
a. public good. b. commons good. c. club good. d. normal good. e. private good.