The profit motive encourages businesses to produce the goods and services that consumers desire.
Answer the following statement true (T) or false (F)
True
The profit motive can induce business firms to pollute the environment, restrict competition, or maintain unsafe working conditions. However, the profit motive also encourages businesses to produce the goods and services consumers desire at prices they're willing to pay.
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Which of the following statements is correct about the roles of economists?
a. Economists are best viewed as policy advisers. b. Economists are best viewed as scientists. c. In trying to explain the world, economists are policy advisers; in trying to improve the world, they are scientists. d. In trying to explain the world, economists are scientists; in trying to improve the world, they are policy advisers.
Suppose the Fed decreased the growth rate of the money supply. Which of the following would be lower in the long run?
a. both the natural rate of unemployment and the inflation rate b. the natural rate of unemployment, but not the inflation rate c. the inflation rate, but not the natural rate of unemployment d. neither the natural unemployment rate nor the inflation rate
Refer to the diagram. This firm's average fixed costs are:
A. not shown.
B. the vertical distance between AVC and MC.
C. the vertical distance between AVC and ATC.
D. equal to the per unit change in MC.
When Jack's income increases by $5,000, he spends an additional $4,000 dollars. This implies that his marginal propensity to consume is 1.25
Indicate whether the statement is true or false