If a firm expects that the price of its product will be higher in the future than it is today, then
A) the firm has an incentive to decrease supply now and increase supply in the future.
B) the firm has an incentive to decrease quantity supplied now and increase quantity supplied in the future.
C) the firm has an incentive to increase supply now and decrease supply in the future.
D) the firm will go out of business.
A
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You own a business that answers telephone calls for physicians after their offices close. You have an incentive to substitute capital for labor if the
A) marginal product of labor increases. B) price of labor increases. C) price of capital increases. D) price of labor decreases.
Which of the following has the lowest present value?
A) $1,000 received in 3 years if the current interest rate is 4% B) $1,500 received in 5 years if the current interest rate is 6% C) $2,000 received in 6 years if the current interest rate is 11% D) $3,000 received in 10 years if the current interest rate is 13%
David Elkind, author and child expert, says that:
a. Children do not have enough to do b. Children have too much free time c. Children are overcommitted and growing up too fast and too soon d. Children spend too much time in unorganized activities
Figure 10-3
?
In Figure 10-3, we would expect the aggregate supply curve in graph (b) to eventually
A. shift to the right, eliminating the recessionary gap. B. shift to the left, eliminating the inflationary gap. C. become steeper in the upper portion, eliminating the inflationary gap. D. become flatter in the upper portion, eliminating the recessionary gap.