If there is an increase in industry supply while the industry demand remains the same, then an individual firm in a perfectly competitive industry currently earning negative profits will see its profits
A. decrease further.
B. increase.
C. not change.
D. impossible to determine
Answer: A
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If the FOMC decides to engage in the selling of government bonds, what is the effect on the money supply?
A) a decrease B) an increase C) an initial increase followed by an additional rise when the bonds mature D) no change
Consider the two graphs above. Suppose that financial liberalization enables more businesses to access credit markets. This would ________ the desired level of the capital stock, as depicted in graph ________
A) increase; B B) increase; A C) decrease; B D) decrease; A
Tax revenue
What will be an ideal response?
A good is an inferior good if the consumer buys less of it when
a. his income rises. b. the price of the good rises. c. the price of a substitute good falls. d. his income falls.