The leaders of a major technology firm are optimistic, and they decide to sell more shares of stock and build some new facilities. Based on their actions, it is most likely that the securities market is ______.
a. falling quickly
b. rising quickly
c. having mixed results
d. bottoming out
b. rising quickly
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Barylia is an economy with extractive institutions such as the absence of private property rights and high tax rates. Is it guaranteed that Barylia will always experience no growth or negative growth? Why or why not?
What will be an ideal response?
Which of the following is true of the demand curve faced by a monopolistically competitive firm? a. The demand curve faced by a monopolistically competitive firm is kinked
b. The demand curve faced by a monopolistically competitive firm is downward-sloping. c. The demand curve faced by a monopolistically competitive firm is upward-sloping. d. The demand curve faced by a monopolistically competitive firm is horizontal.
Assume the price of capital doubles and, as a result, firms make no change in the relative quantities of capital and labor they employ. This implies that:
A. labor is not readily substitutable for capital. B. the law of diminishing returns is not applicable. C. the firms are producing an inferior good. D. the demand for capital is highly price elastic.
Firms report that their workers are working no overtime. The government reports that the unemployment rate is 13.5%. In this situation, the multiplier is likely to be
A. negative. B. zero. C. large. D. small.