Which of the following examples uses ceteris paribus?
a. Sarah tests the influence of the price of grapefruit on the demand for the product while eliminating other variables.
b. Bernard tests how the supply of zinc changes depending on the price and the expectation of future prices.
c. Ghena tests the influence of the number of consumers and product quality on the demand for a sports drink.
d. Diego tests how input prices, prices of related goods, and technology together change the supply of electric toothbrushes.
a. Sarah tests the influence of the price of grapefruit on the demand for the product while eliminating other variables.
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Most people who live in market-oriented economies would
a. oppose trying to block better products that lower the cost of services. b. support trying to block better products that lower the cost of services. c. oppose trying to block better products that lower the cost of labor. d. support trying to block better products that lower the cost of labor.
A monopolistically competitive firm can minimize its losses by producing where ________ as long as ________.
A. P = ATC; P > MR B. MR = MC; P > AVC C. P = MC; P > ATC D. P = MR; P > AFC
Net public debt is
A) the excess of annual tax revenues over annual government spending. B) the sum owed by the public to keep the Social Security system afloat. C) the portion of government debt held by private individuals and firms. D) the excess of annual government spending over annual tax revenues.
A distinction between stocks and bonds is that
A) although the return on a bond is determined by the forces of supply and demand, the return on a stock is set by the stock exchange. B) stocks represent ownership claims to the company and bonds do not. C) bonds must be held for a fixed number of years whereas stocks can be bought and sold at any time. D) bonds can be traded many times in the bond market, while stocks are non-transferable. E) bonds cannot be sold to anyone other than the company that issued it while stocks can be resold to anyone.