If a firm's sales turn out to be more than expected, inventories will be
A. lower than expected, and there will be more production in the future.
B. lower than expected, and there will be less production in the future.
C. higher than expected, and there will be less production in the future.
D. higher than expected, and there will be more production in the future.
Answer: A
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In the quantity equation MV = PT, V is the:
A. income velocity of money. B. transactions velocity of money. C. inflation rate. D. value of the money supply.
If the central prediction of the Solow Growth Model is valid,
A. per capita Real GDP differences among nations will diminish. B. per capita Real GDP differences among nations will increase. C. population growth rates in rich countries will increase. D. economic freedom as measured by the Heritage Foundation Index will decrease.
The theory of efficient markets assumes that:
A. the prices of all financial instruments reflect all available information. B. the best approach to determining stock prices is to follow the chartists. C. prices of bonds, but not stocks, reflect all available information. D. stock prices are relatively rigid because it takes a while for information to efficiently move through the market.
Which of the following factors best explains why consumers might prefer to go to a restaurant that was similar to another restaurant in terms of décor and food choices but had fewer customers?
a. the presence of network externalities b. the idea that some people receive utility from goods they believe are popular c. income and substitution effects d. switching costs