Related to the Economics in Practice on p. 525: If the estate in the Chekhov play Uncle Vanya is earning 2 percent and a less risky investment is also earning 2 percent, the price of the estate would ________ to make the two investments financially equivalent.
A. have to rise
B. have to not change, since the return on investment is the same
C. have to fall
D. none of the above
Answer: C
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In the Keynesian cross diagram, an increase in autonomous consumer expenditure causes the aggregate demand function to shift up, the equilibrium level of aggregate output to ________, and the IS curve to shift to the ________,
everything else held constant. A) rise; left B) rise; right C) fall; left D) fall; right
A firm's accounting profit is always equal to or greater than its economic profit
a. True b. False Indicate whether the statement is true or false
Explain the difference between self-interest and selfishness.
What will be an ideal response?
Higher prices will increase total revenue if
A. Demand is inelastic. B. The price elasticity of demand is zero. C. Demand is unitary elastic. D. Demand is elastic.