The law of supply states that, holding other factors constant, as price increases
a. Quantity supplied increases
b. Quantity supplied decreases
c. Quantity demanded increases
d. Quantity demanded decreases
a
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Carefully define the following terms and explain their importance. a. Variable b. Ray c. Slope d. Contour map
What will be an ideal response?
Suppose AT&T issues a five-year bond with a face value of $10,000 that pays an annual coupon payment of $300. What is the interest rate that AT&T is paying on the borrowed funds?
a. 15% b. 3% c. 10% d. 33%
A basic feature of the classical system of self-regulating markets was that
A. overproduction and unemployment would cause prices and wage rates to increase. B. flexible wages and prices would eliminate unemployment and overproduction. C. overproduction would never occur. D. an increase in saving would cause an increase in the interest rate and a decrease in investment spending.
By definition, a government-sponsored good
A. does not affect society's general welfare. B. is always provided at a zero price. C. is a good that should be available only to upper-income groups. D. is a good that is deemed socially desirable by the political process.