Cost-push inflation is a result of an increase in the per unit costs of production
a. True
b. False
Indicate whether the statement is true or false
True
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According to economists, when two people make exactly the opposite decision
A) one of them is acting irrationally. B) each person evaluates the situation according to his/her individual self-interest. C) one of them is acting out of spite. D) one of them should compromise.
Transaction costs reduce the benefit accruing to the parties involved in an exchange. Explain why
An advantage of foreign direct investment versus domestic investment for businesses can be to:
A. encourage the flourishment of 'sweatshops.' B. cut costs of production. C. reduce overall risk relative to financial investments available at home. D. increase profit without having to pay taxes on the earnings.
If a competitive firm maximizes short-run profits by producing some quantity of output, which of the following must be TRUE at that level of output?
A) p = MC B) MR = MC C) p ? AVC D) All of the above.