A firm manager with vertical indifference curves (output on the horizontal axis, profit on the vertical axis) views:
A. both profits and outputs to be "goods."
B. only output to be "goods."
C. only profits to be "goods."
D. None of the statements is correct.
Answer: B
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One reason a country does not specialize completely in production is that production of most goods involves increasing opportunity costs
Indicate whether the statement is true or false
Which of the following are examples of leakages?
a. government purchases, net taxes and imports b. government purchases, exports and investment spending c. net taxes, household saving and imports d. net taxes, investment spending and exports e. net exports, investment spending and net taxes
The fraction of an industry's sales that are accounted for by the four largest firms is called
A) the four-firm competition ratio.
B) the four-firm concentration ratio.
C) the four-firm industry ratio.
D) the four-firm oligopoly ratio.
The Security Market Line (SML) is upward-sloping, indicating that the:
A. Beta of an investment increases as its risk level increases B. Average expected return on investments decreases as their risk level decreases C. Average expected return on the risk-free asset increases as its beta increases D. Average expected return of the market portfolio increases as its beta increases