Although the efficient quantity to produce of any good is located where marginal social benefit and marginal social cost are equal, there will usually be other quantities where the sum of consumer and producer surplus are greater
Indicate whether the statement is true or false
FALSE
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? A country would tend to experience currency appreciation relative to other countries if:
a. the profitability of investments within the country increases relative to the rest of the world. b. people in the foreign currency markets expect the value of the currency to rise in the near future. c. the foreign demand for its exports increases. d. all of the above
Managers (________) may act in their own interest rather than in the interest of the stockholder-owners (________) because the managers have less incentive to maximize profits than the stockholder-owners do
A) principals; agents B) principals; principals C) agents; agents D) agents; principals
The goods and services that count toward GDP are:
A. defined in terms of the location of production, not the citizenship of the producer. B. anything produced by a nation’s citizens, regardless of who owns it. C. citizens producing things no matter where they produce it. D. things like stocks and bonds issued by a corporation.
If the price of music downloads decreases, which of the following is most likely to occur? a. Quantity demanded will decrease. b. Quantity demanded will increase. c. Demand will increase
d. Demand will decrease.