In the above figure, what happens to the firm's optimal level of output if the price it receives for its product increases from P2 to P3?
A. Output decreases.
B. Output increases.
C. Output stays the same.
D. There is not enough information provided to know what happens to output.
Answer: B
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________ is the corporation's promise to repay the holder a fixed sum of money on the designated maturity date plus pay the lender periodic interest until that date
a. A mutual fund b. A corporate stock c. A bond d. An annuity
What could cause a production possibilities curve to move down and to the left?
(A) Thousands of investors from overseas invest money in a nation's economy. (B) A baby boom 20 years ago results in a large number of young adults in the population. (C) An increase in the use of computer technology speeds up production. (D) A nation loses land after being defeated in a war.
With floating exchange rates, the negative effects of international trade shocks on internal balance are worsened by the effects of the resulting change in the exchange rate.
Answer the following statement true (T) or false (F)
The questions that an economic system attempts to solve include
A. what to produce. B. for whom items are produced. C. how to produce items. D. all of these.