Suppose present interest rates are relatively high. Financial investors will hold
A) smaller speculative balances because they expect bond prices to fall further.
B) larger speculative balances because they expect bond prices to fall further.
C) smaller speculative balances because they do not expect bond prices to fall further.
D) larger speculative balances because they do not expect bond prices to fall further.
Ans: C) smaller speculative balances because they do not expect bond prices to fall further.
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The excess supply curve of a product we (H) import from foreign countries (F) increases as
A) excess demand of country H increases. B) excess demand of country F increases. C) excess supply of country H increases. D) excess supply of country F increases. E) excess supply of country F decreases.
Which of the following is the most likely outcome of minimum wage laws?
a. an increase in both the quantity of labor supplied by workers and the quantity of labor demanded by firms b. an increase in the quantity of labor supplied by workers and a decrease in the quantity of labor demanded by firms c. a decrease in the quantity of labor supplied by workers and an increase in the quantity of labor demanded by firms d. a decrease in both the quantity of labor supplied by workers and the quantity of labor demanded by firms
If someone suddenly developed a new technology that caused energy prices to drop significantly, it would most likely cause a ______.
a. negative supply shock b. positive supply shock c. period of high inflation d. period of high unemployment
A monopolist will not be able to receive a positive economic profit at any price-output combination at which
A) marginal cost is less than average total cost when the monopolist has equated marginal revenue and marginal cost. B) the average total cost curve is everywhere above the demand curve. C) marginal cost is less than average variable cost when the monopolist has equated marginal revenue and marginal cost. D) marginal revenue falls at a faster rate than marginal cost increases.