An increase in planned investment causes
A. output to increase.
B. output to decrease by an amount equal to the decrease in investment.
C. output to decrease, but by a larger amount than the decrease in investment.
D. output to decrease, but by a smaller amount than the decrease in investment.
Answer: A
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One reason that a large share of the trade between high-income industrial economies is intraindustry trade is because
A) it is more advantageous than interindustry trade. B) high-income industrial economies produce in the first stage of the product cycle. C) high-income industrial economies are wealthier than developing countries. D) high-income industrial economies have dissimilar resource endowments in absolute terms. E) it allows firms to take advantage of internal economies of scale.
A movie monopolist sells to students and adults. The demand function for students is QdS = 600 - 100P and the demand function for adults is QdA = 1,200 - 100P. The marginal cost is $2 per ticket. Suppose the movie theater can price discriminate. How many tickets does the theater sell to students to maximize profits?
A. 2500 B. 500 C. 200 D. 600
According to the efficient markets hypothesis, which of the following would decrease the price of stock in Veblen's Leisure Company?
a. Veblen announces, just as everyone had expected, that it has fired its CEO who has been accused of ethics violations. b. Veblen announces, as the market had expected, that its profits were low. c. Fundamental analysis published by KM Financial shows that Veblen's stock is undervalued. d. A highly anticipated book is published by a Veblen insider which details Veblen's innovative technology in plain English, information that was previously unavailable to the public and which will now be used by Veblen's competitors.
If the demand curve facing the monopolist is P = 70 ? 14Q, then the slope of its marginal revenue curve is:
A. ?35. B. ?7. C. ?28. D. ?14.