What will a price ceiling that is non-binding do?
a) It will cause a surplus in the market.
b) It will cause a shortage in the market.
c) It will cause the market to be less efficient.
d) It will have no effect on the market price.
Ans: d) It will have no effect on the market price.
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Bond prices and bond yields have a(n) ______________ relationship.
A. direct B. inverse C. independent D. positive
Diseconomies of scale:
a. occur only in the short run. b. occur when at least one resource is fixed and unit costs decrease as the quantity of production increases. c. occur when at least one resource is fixed and unit costs increase as the quantity of production increases. d. are represented by the upward-sloping portion of the short run average total cost curve. e. occur when all resources are variable and unit costs increase as the quantity of production increases.
In the long-run AS-AD model,
a. the position of the AD curve determines output b. the self-correcting mechanism of the economy is irrelevant c. the AS curve shifts leftward whenever the economy is growing d. the position of the AD curve determines the price level e. output fluctuates a great deal
The difference between a business plan and a budget is:
a. A budget is a one-to-three year planning document, but a business plan is a 10-to-20 year planning document. b. Really, there is no difference c. A budget is a long-term planning document, and a business plan is a very short-term planning document. d. A business plan is a three-to-five year planning document, and a budget is generally a one-to-three year planning document. e. None of the above