Assume you are looking at a graph depicting the security market line. If the market risk premium increases, then the:

A) Market rate of return will plot at a lower point on the vertical axis.
B) Intercept point of the security market line will rise up the vertical axis.
C) Point depicting the market rate of return will shift to the right parallel to the horizontal axis.
D) Slope of the security market line will rise while the intercept point remains constant.
E) Slope of the security market line will rise as the intercept point rises up the vertical axis.

"Under central planning, some group has to decide how to get the necessary inputs produced in the right amounts and delivered to the right places at the right time. This is a nearly impossible task without markets and profits." This quotation best identifies the

A) incentive problem under central planning.
B) coordination problem under central planning.
C) self-sufficiency dilemma under communism.
D) resource overcommitment problem under communism.

Given implicit or explicit resource price agreements,if the actual price level is below the expected price level,the:

A) economy will move rightward along the short-run aggregate supply curve.
B) economy will move leftward along the short-run aggregate supply curve.
C) short-run aggregate supply curve will shift to the left.
D) long-run aggregate supply curve will become steeper.
E) short-run aggregate supply curve will become flatter.

Poling Clinic bases its budgets on the activity measure patient-visits. During July, the clinic planned for 3,600 patient-visits, but its actual level of activity was 4,000 patient-visits. Revenue should be $30.40 per patient-visit. Personnel expenses should be $30,000 per month plus $9.30 per patient-visit. Medical supplies should be $1,000 per month plus $3.70 per patient-visit. Occupancy expenses should be $9,300 per month plus $0.80 per patient-visit. Administrative expenses should be $4,300 per month plus $0.30 per patient-visit.Required:Prepare a report showing the clinic's activity variances for July. Indicate in each case whether the variance is favorable (F) or unfavorable (U).

Closed or defensive body positions include leaning forward with uncrossed arms and legs,with the arms away from the body.

If interest rates decrease, business investment expenditures are likely to ______, and consumer durable expenditures are likely to _________.

A) increase; increase
B) increase; decrease
C) decrease; increase
D) decrease; decrease
E) be unaffected; be unaffected