Suppose demand increases and supply decreases. Which of the following will happen?
What will be an ideal response?
Equilibrium quantity will rise, fall, or stay the same and equilibrium price will increase.
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How consistent is the Keynesian consumption function with the random walk hypothesis?
What will be an ideal response?
The owner of a sole proprietorship has limited liability, while stockholders of corporations have unlimited liability
a. True b. False Indicate whether the statement is true or false
As a result of the government procurement policy in the U.S.:
a. the domestic consumers are required to pay a higher price than the government for the domestically produced goods. b. the government wields the sole authority of importing goods from abroad. c. the government wields the sole authority of exporting goods. d. the government is required to buy the domestic goods if the domestic price is less than the world price. e. the government is required to sponsor research and development for the domestic firms.
It costs a furniture company $8,750 to produce 25 tables. The company's total cost will be $9,125 if it produces a 26th table. If the company produces 26 tables, then
a. its average cost is greater than its marginal cost. b. its average cost and its marginal cost are equal. c. its average cost is less than its marginal cost. d. This cannot be determined from the information given.