The law of demand states that other things equal:
What will be an ideal response?
as the price increases, the quantity demanded will decrease.
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Increasing marginal returns to labor
A) occur when a particularly efficient worker is employed. B) describe the portion of a total product curve where the marginal product is negative. C) mean that two workers produce less than twice the output of one worker. D) are the result of specialization and division of labor in the production process. E) occur only when there are increasing marginal returns to capital.
The calculation of stockholder wealth involves
A) the time-value of money concept. B) the cash flow stream. C) business and financial risk. D) All of the above
In 2010 President Obama proposed more generous tax write-offs for businesses that invest in additional equipment in order to stimulate investment spending
a. True b. False Indicate whether the statement is true or false
A government budget deficit affects the supply of loanable funds, rather than the demand for loanable funds, because
a. in our model of the loanable funds market, we define "loanable funds" as the flow of resources available to fund private investment. b. in our model of the loanable funds market, we define "loanable funds" as the flow of resources available from private saving. c. markets for government debt are fundamentally different from markets for private debt. d. of our assumption that the economy is closed.