Which of the following would shift the investment demand curve rightward?
a. Firms are operating their plants at less than full capacity.
b. A decrease in the interest rate.
c. A decrease in business taxes.
d. All of the above.
e. None of the above.
e
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Which of the following is a possible result of adverse selection?
a. Only lemons remain in the market for used cars. b. A store manager shirks his responsibility because his supervisor is not present at all times. c. A car mechanic does not bother to properly fix the customers' cars when his work cannot be monitored. d. Many people selling their houses at very low prices expecting prices to decline further.
If both supply and demand decrease and the shift in demand dominates, which of the following happens? a. The equilibrium quantity increases. b. The equilibrium price and the equilibrium quantity decrease. c. The equilibrium price decreases and equilibrium quantity increases. d. The equilibrium quantity increases and the equilibrium price change is indeterminate
e. The equilibrium price increases and the equilibrium quantity decreases.
Scarcity forces society to confront three critical issues. List those issues and explain how they are related to the problem of scarcity.
What will be an ideal response?
Which of the following is an exhaustible resource?
a. timber b. oil c. fish d. grasslands e. rivers