Everything else held constant, if the expected return on ABC stock rises from 5 to 10 percent and the expected return on CBS stock is unchanged,
then the expected return of holding CBS stock ________ relative to ABC stock and the demand for CBS stock ________.
A) rises; rises
B) rises; falls
C) falls; rises
D) falls; falls
D
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The Keynesian consumption function implies that at a given moment persons with high incomes are saving ________ persons with low incomes, a prediction which is ________ by actual cross-section consumption data
A) a lower fraction of income than, confirmed B) a lower fraction of income than, not confirmed C) a higher fraction of income than, confirmed D) a higher fraction of income than, not confirmed E) the same fraction of income as, confirmed
Which of the following will NOT occur when a tariff is imposed on an imported product?
A. The price paid by consumers will rise. B. The price received by importers will fall. C. The level of imports will fall. D. The demand curve for imports will shift to the left.
Even though points inside a production possibilities curve are attainable, why are they not preferred?
What will be an ideal response?
The market for wheat can be described at perfectly competitive while the market for pizza is better described as monopolistically competitive
Which of the following is a NOT a similarity between perfectly competitive and monopolistically competitive firms? A) Both monopolistically competitive and perfectly competitive firms produce at their efficient scale. B) Both monopolistically competitive and perfectly competitive firms are free to enter and exit the market. C) Both monopolistically competitive and perfectly competitive firms have a small market share. D) There are a large number of firms in both monopolistically competitive and perfectly competitive markets.