A recent epidemic of mad cow disease caused the government to mandate that thousands of cows be completely destroyed. This will likely cause:
A. the supply of leather shoes to decrease.
B. the demand and the supply of leather shoes to increase.
C. the demand for leather shoes to increase.
D. It will not affect the market for leather shoes.
Answer: A
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Which of the following are liabilities to a bank?
A. vault cash and demand deposits B. property and capital stock C. capital stock and reserves D. demand and time deposits
Xanadu Corp has issued 90 million shares of stock, and it has no plans to issue any more in the near future. If the demand for Xanadu stock increases,
a. the price and quantity of Xanadu stock will both increase b. the price and quantity of Xanadu stock will both decrease c. the price will remain constant, and the quantity of Xanadu stock will increase d. the quantity of Xanadu stock will remain constant, and the price will increase e. the price will increase, and the quantity of Xanadu stock will decrease
A sunk cost is one that
a. changes as the level of output changes in the short run. b. was paid in the past and will not change regardless of the present decision. c. should determine the rational course of action in the future. d. has the most impact on profit-making decisions.
The derived demand curve for loans slopes downward because as interest rates
A. fall, future income becomes less valuable. B. fall, investors develop pessimistic expectations. C. fall, future income becomes more valuable. D. rise, investors become pessimistic.