In economics, "capital" refers to
a. money
b. stocks, bonds, and other financial assets
c. the seat of government
d. machines, buildings, tools, and knowledge
e. net worth (assets minus liabilities)
D
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Refer to the scenario above. If the number of participants in the auction increases to 20, Rebecca should place a bid of ________
A) $45,000 B) $42,750 C) $4,500 D) $40,500
Define the following terms carefully: (a) Full employment (b) Purchasing power of money (c) Real wage rate (d) Relative price
What will be an ideal response?
Which of the following could be evidence of a market failure?
A) There are only a handful of firms competing against each other in an industry. B) The market price of a product is above the average cost of production. C) Resources in an economy are not fully utilized. D) Market prices do not reflect true production costs.
Firm A producing one good acquires another firm B producing another good. Price elasticity of demand for Firm A's good is -1.8 and Firm's B is -1.8 . Holding other things constant and assuming both goods are complements, the acquiring firm should
a. lower prices on both goods with a larger decrease in Firm A's good b. lower prices on both goods with a larger decrease in Firm B's good c. Lower prices on both goods by the same amount d. Lower prices on both goods