A TRUE signal must
A. convey information about the long-run future.
B. convey information only.
C. explain in detail why something should be done.
D. convey information and direct the resource owners to act appropriately.
Answer: D
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An economy's investment demand curve shows the inverse relationship between the quantity of investment demanded and the market interest rate, other things held constant
a. True b. False Indicate whether the statement is true or false
The circular flow model shows the relationships between
A. government and business firms. B. government and households. C. households and business firms.
Carolyn's Pottery Shop produces vases that sell for $15 each. Assume that labor is the only input that varies for the firm. If Carolyn hires 10 workers, she can produce and sell 500 vases per week. If she hires 11 workers, she can produce and sell 560 vases per week. Carolyn pays each of her workers $400 per week. Which of the following is correct?
a. For the 11th worker, the marginal profit is $500. b. For the 11th worker, the marginal revenue product is $500. c. The firm is maximizing its profit. d. If the firm is employing 11 workers, then its profit would increase if it cut back to 10 workers.
Command-and-control policies are desirable because their tough pollution reduction targets force firms to develop new technologies to survive.
Answer the following statement true (T) or false (F)