Savings that pay for capital investment can come from:
A. within a country.
B. outside a country.
C. domestic savings.
D. All of these are true.
D. All of these are true.
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The amount by which people will increase or decrease their purchases when prices change
A) is typically greater in the case of luxuries than in the case of necessities. B) is typically less for business firms than for households because business firms can more easily borrow to maintain purchasing patterns. C) is typically less for business firms than for households because business firms must have certain goods to remain in operation. D) tends to be greater over longer periods of time because it takes time to invent and to discover substitutes. E) will be approximately zero unless the demand also changes.
The most important feature of the Single European Act of 1986, which amended the founding Treaty of Rome, was dropping the requirement of
A) unanimous consent for measures related to market completion and making it a decision that only Germany and France agreed about. B) unanimous consent for measures related to market completion. C) majority consent for measures related to market completion and making it a decision that only Germany and France agreed about. D) unanimous consent for measures related to agricultural policies only. E) unanimous consent for measures related only to fiscal policies.
Assume the most typical shapes for the demand and supply in a competitive market. Suppose that demand falls and supply increases. Which of the following statements is correct?
a. The equilibrium price will fall; the equilibrium quantity may rise or fall. b. The equilibrium price will rise; the equilibrium quantity may rise or fall. c. The equilibrium quantity will fall; the equilibrium price may rise or fall. d. The equilibrium quantity will rise; the equilibrium price may rise or fall. e. The equilibrium price will fall; the equilibrium quantity will not change.
The point where the budget constraint and an indifference curve are tangent
A. Indicates profit maximization. B. Represents the optimal consumption point. C. Represents maximum total revenue. D. Indicates the optimal level of production.