Theories and models are explanations of how things work that help us understand and predict how and why economic agents like consumers, producers, firms, government, etc. behave they way they do
a. True
b. False
Indicate whether the statement is true or false
True
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A firm has just ended its calendar year making a sale in the amount of $150,000 of merchandise purchased during the year at a total cost of $112,500. Although the firm paid in f for the merchandise during the year, it has yet to collect at year end from the customer. The n profit and cash flow from this sale for the year are
A) $0 and $150,000, respectively. B) $37,500 and -$150,000, respectively. C) $37,500 and -$112,500, respectively. D) $150,000 and $112,500, respectively.
In the long run, a change in the money supply does not affect the natural rate of unemployment because _____
Fill in the blank(s) with the appropriate word(s).
We cannot predict the effect on the market clearing price, but know that the equilibrium quantity will decrease when
A) supply increases and demand decreases B) supply decreases and demand increases. C) supply and demand for a product simultaneously decrease. D) supply and demand for a product simultaneously increase.
In the market for money, the behavior of borrowers is represented by the
A. supply curve. B. a combination of the supply and demand curves. C. neither the supply curve nor the demand curve. D. demand curve.