Under earnings-sharing regulation, if a firm's profits ________ above a certain level, they must be shared with the firm's ________
A) rise; customers
B) fall; customers
C) rise; suppliers
D) fall; suppliers
E) rise; competitors
A
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Which of the following situations leads to an unplanned increase in inventories of $2.0 trillion?
A) real GDP = $5.0 trillion and aggregate planned expenditures = $5.0 trillion B) real GDP = $6.0 trillion and aggregate planned expenditures = $4.0 trillion C) real GDP = $8.0 trillion and aggregate planned expenditures = $5.0 trillion D) real GDP = $5.0 trillion and aggregate planned expenditures = $7.0 trillion E) More information is needed about planned investment and actual investment.
Peanut butter and jelly are:
a. substitutes and have a positive cross-price elasticity of demand. b. complements and have a positive cross-price elasticity of demand. c. substitutes and have a positive cross-price elasticity of demand. d. complements and have a negative cross-price elasticity of demand. e. inferior goods when the income elasticity of demand is positive.
A change in Federal Reserve monetary policy will:
A. have no effect on the Security Market Line. B. invert the Security Market Line. C. change the slope of the Security Market Line. D. cause a vertical shift of the Security Market Line.
Perfect competition means that firms are
A. powerful sellers. B. price makers (firms set the price of the market). C. unable to make normal profits. D. price takers (firms must accept the price of the market).