A manager invests $400,00 . in a technology to reduce overall costs of production. The company managed to reduce their cost per unit from $2 to $1.85 . This affects
a. Economic profits
b. Accounting profits
c. Both a and b
d. None of the above
c
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Which of the following would shift the LM curve?
A) an increase in the tax rate B) an increase in the real money supply C) a reduction in business confidence D) All of these.
The desired stock of capital is that stock which
A) firms always obtain. B) corresponds to the natural level of output. C) would obtain when net investment is zero. D) firms are always adjusting toward.
The "police power" of government to control business
(a) was exercised during the colonial period but lapsed when the Constitution was written. (b) was exercised during the colonial period and carried over to the new nation; it still exists today. (c) was not widely exercised during the colonial period but assumed greater importance in the new nation. (d) was important in England but was never important in the Americas, either before or after the Revolution.
When the federal government deregulated the banking industry, savings and loans
a. continued to make only mortgage loans b. began to make riskier loans in areas such as speculative land development c. developed new loan markets which allowed them to prosper and expand d. began to merge with commercial banks e. lowered interest rates to attract new depositors