If you own a share of stock in a company and the risk associated with its business rises you would expect
A. a bubble.
B. a capital loss.
C. a higher dividend.
D. a capital gain.
Answer: B
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The only goods you consume are pizza and soda. Both are normal goods. For you, pizza and soda are substitutes. Which of the following leads you to buy more of both goods?
A) The price of a pizza falls. B) The price of a soda falls. C) Your income increases. D) Both answers A and B are correct.
Asset-price bubbles ________
A) are a relatively recent phenomenon B) end with an increase in asset prices C) have been a feature of market economies for centuries D) are likely to be prevented by advances in computer technology and telecommunications
A competitive firm sells its output for $50 per unit. Assume that labor is the only input that varies for the firm. The marginal product of the 10th worker is 10 units of output per day; the marginal product of the 11th worker is 8 units of output per day. The firm pays its workers a wage of $160 per day. For the 10th worker, the value of the marginal product of labor is
a. $250. b. $400. c. $500. d. $1,280.
Suppose a monopolist faces the following demand curve.
This demand curve can be used to determine:
A. the impact of advertising on demand. B. the total cost associated with producing different levels of output. C. the marginal cost associated with producing different levels of output. D. the monopolist's total revenue at different price and quantity combinations.