At a given interest rate, the investment function shows
A. how much businesses will spend on the capital stock.
B. how many funds people will invest in the stock market.
C. how profitable it will be for firms to expand.
D. how many funds people will earn on their stock market investments.
Answer: A
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The impact of a decrease in the marginal tax rate on labor supply will be larger as the tax elasticity of supply gets smaller.
Answer the following statement true (T) or false (F)
An example of positive analysis is studying
a. how market forces produce equilibrium. b. whether equilibrium outcomes are fair. c. whether equilibrium outcomes are socially desirable. d. if income distributions are fair.
Opportunity cost refers to:
A. the amount of dollars that have to be spent in order to employ a resource. B. the cost of employing one more unit of a resource. C. a cost that a decision maker has already incurred. D. the cost associated with foregoing the opportunity to employ a resource in its best alternative use.
A price-setting firm faces the following estimated demand and average variable cost functions:Qd = 800,000 - 2,000P + 0.7M + 4,000PRAVC = 500 - 0.03Q + 0.000001Q2where Qd is the quantity demanded, P is price, M is income, and PR is the price of a related good. The firm expects income to be $40,000 and PR to be $53. Total fixed cost is $2,600,000. What is the estimated demand function for the firm?
A. Qd = 800,000 - 4,000P B. Qd = 800,000 - 500P C. Qd = 1,040,000 - 2,000P D. Qd = 1,600,000 - 2,000P