As the price of cookies increases, firms that produce cookies will:
A. increase the supply of cookies.
B. decrease the supply of cookies.
C. increase the quantity of cookies supplied.
D. decrease the quantity of cookies supplied.
Answer: C
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If the CPI was 108.00 in 1942 and is 336.96 today, then $10 in 1942 purchased the same amount of goods and services as
a. $2.57 purchases today. b. $28.89 purchases today. c. $31.20 purchases today. d. $38.89 purchases today.
Leverage is best defined as:
A. low interest rates at the beginning of the term of a loan that later rise. B. using friends inside the banking industry to secure loans. C. the ability of people without income to secure mortgages. D. the practice of buying an asset with borrowed money.
Crowding out occurs when
A. increased taxes force higher levels of national saving. B. deficit spending by the government forces private investment spending to contract. C. local businesses cannot get government contracts because of the higher bids of large corporations. D. foreign investors are willing to pay higher prices for U.S. bonds than American citizens will pay.
A firm that can sell as much as it can produce at the market price is likely operating in:
A. a perfectly competitive market. B. a monopoly. C. a monopolistically competitive market. D. an oligopoly.