When price falls in a perfectly competitive industry, each firm will
a. sell more output
b. sell the same amount of output but earn less economic profit
c. sell less output
d. raise its price
e. shut down production until price regains its former level
C
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The quantity theory of money implies that:
A) inflation is equal to the gap between the growth rate of money supply and the current real interest rates. B) inflation is equal to the gap between the growth rate of money supply and the growth rate of nominal GDP. C) inflation is equal to the gap between the growth rate of money supply and the current nominal interest rates. D) inflation is equal to the gap between the growth rate of money supply and the growth rate of real GDP.
An expectation of increased prices of a good in the future is likely to:
A. increase current demand. B. decrease current demand. C. have no impact on current demand. D. only affect seller's decisions.
The health savings account (HSA):
a. is also called a health reimbursement arrangement (HRA). b. is funded with after-tax dollars. c. allows its owner to ignore high medical care prices. d. is often used in conjunction with a high-deductible health plan (HDHP). e. can be used to cover non-medical spending without penalty.
Which of the following would be most likely to earn an AAA rating from Standard & Poor's?
A. A 10-year bond issued by Canada B. A 10-year bond issued by a state or municipality C. Shares of stock in Coca-Cola D. A bond issue by a new vegetarian fast-food chain