Firm A owns produces both toothpaste and toothbrushes. In order to increase profits the firm must
a. Increase prices for both toothbrushes and toothpaste
b. Decrease prices for both toothbrushes and toothpaste
c. Increase prices on toothbrushes and increase the price on toothpaste
d. Increase prices on toothbrushes but keep the price on toothpaste constant
b
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Investment is financed by which of the following?
I. Government spending II. National saving III. Borrowing from the rest of the world A) I, II, and III B) I and II only C) I and III only D) II and III only
The basic organizing framework for both microeconomic and macroeconomic models is
A. purely competitive markets. B. government planning of the economy. C. demand and supply. D. democratic socialism. E. All of these responses are correct.
Variable costs increase when output rises.
Answer the following statement true (T) or false (F)
Unlike the Classical economists, Keynes believed that money could affect real economic activity through its effects on
A) the price level. B) the interest rate. C) savings. D) velocity.