In the market for bananas, the price is $2.00 a bunch. An increase in the supply of bananas decreases the price of bananas and ________
A) the quantity supplied increases because the price falls
B) increases the demand for bananas
C) increases the quantity of bananas demanded
D) creates a shortage of bananas
C
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If a good is capital intensive it means that the good is produced
A) using relatively more capital than goods that are not labor intensive. B) using capital as the only input. C) using more capital per unit of output than goods that are not capital intensive. D) using capital such that the total cost of capital is greater than the total cost of labor. E) using capital such that the cost of capital is more than 50% of total cost.
Identify the correct statement
a. During a recession, investment decreases while consumption increases. b. During a recession, investment increases while consumption decreases. c. During a recession, investment is constant while consumption increases. d. Annual variations in investment are larger than annual variations in consumption. e. Annual variations in investment are smaller than annual variations in consumption.