If a partnership raised funds by recruiting additional owners to invest in the firm, what would happen to the firm's financial capital?
What will be an ideal response?
The firm's financial capital would increase.
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An example of cyclical unemployment is a(n):
a. textile worker permanently laid off due to job lost to imports. b. autoworker who is temporarily laid off due to a decline in demand for cars. c. engineer permanently laid off due to advances in technology. d. computer programmer who leaves one job and accepts a new job.
When we compare PAE and actual output (Y) if PAE is greater than Y we expect that:
A. inventories to increase. B. inventories to decrease. C. there will be no change in inventories. D. the government will spend more than it has collected in taxes.
Marti wanted to replenish her wardrobe and went to the $30 rack at K-Mart. There she saw three stylish dresses. She was delighted because she would have been willing to pay $40 for the first dress, $35 for the second dress, and $30 for the third dress. She bought all three. Which of the following is correct?
a. Only the third dress sold for its price. b. The consumer surplus she derived was $90. c. The consumer surplus she derived was $105. d. The consumer surplus she derived was $15. e. The consumer surplus she derived was zero because, for the third, price was exactly what she was willing to pay.
In natural monopoly, AC continuously declines due to economies in distribution or in production, which tends to found in industries which face increasing returns to scale. If price were set equal to marginal cost, then:
a. price would equal average cost. b. price would exceed average cost. c. price would be below average cost. d. price would be at the profit maximizing level for natural monopoly e. all of the above