As the investment demand curve becomes steeper, the crowding-out effect will become smaller
a. True
b. False
Indicate whether the statement is true or false
True
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There is only one firm in a small island country. The firm produced 1,000 units of Good X during a particular year out of which it could sell 900. If each unit of the good sells for $500, what is the gross domestic product of the country?
A) $150,000 B) $450,000 C) $40,000 D) $500,000
A simultaneous improvement in the technology used to produce computers and increase in the number of buyers in the computer market would cause the equilibrium price of computers to drop but have an uncertain effect on equilibrium quantity
Indicate whether the statement is true or false
If Slick Shades has a constant marginal cost of production equal to $80 and the distributors have a constant marginal cost of distribution equal to $30, what is the profit-maximizing number of sunglasses (in hundreds) for Slick Shades to produce?
The figure above shows the wholesale demand and marginal revenue curves for Slick Shades Sunglasses, a sunglasses firm with market power. Slick Shades Sunglasses has a constant marginal cost of production and it sells to perfectly competitive independent retail distributors that have a constant marginal cost of distribution.
A) 40
B) 80
C) 55
D) 60
If macaroni and cheese is an inferior good, then
a. the income effect and the substitution effect work in opposite directions b. as the budget line shifts to the right, consumers demand more macaroni and cheese c. when the price of macaroni and cheese rises, the quantity demanded also rises d. the quantity demanded rises as purchasing power rises e. individuals will not consume macaroni and cheese