Suppose there is an increase in profitability. This suggests that
A) firms have increased their expectations of future profits.
B) the real interest rate has increased.
C) the rate of depreciation has increased.
D) all of the above
A
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Which of the following is NOT an assumption regarding people's preferences in the theory of consumer behavior?
A) Preferences are complete. B) Preferences are transitive. C) Consumers prefer more of a good to less. D) All of the above are basic assumptions about consumer preferences.
The major protection against a sudden mass attempt to withdraw cash from banks is the
Economic growth can:
A. reduce the price level in the economy. B. increase poverty overall. C. create less jobs compare to a stagnated economy. D. improve standards of living.
When you use your own savings to start a business, you make a profit
A. after you earn an amount equal to the savings you used to start the business. B. only after you cover the opportunity cost of using your savings to start your business. C. after the first dollar you earn, because you borrowed no funds to start the business. D. only after you earn double the amount of money you invested.