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76. In a market economy, the short-run reaction to an excess supply of a commodity after a decrease in demand is:
A) price will rise, but profits fall.
B) price and profits will fall.
C) price will fall, but profits will be unchanged.
D) price will fall, but profits will increase.
E) price and profits will both increase.
68. If a firm produces more goods than it sells and buys more raw materials than it uses up during the year, an inventory adjustment must be made so as not to:
A) overstate earnings for the year.
B) understate earnings for the year.
C) overstate liabilities at the end of the year.
D) understate liabilitiesg at the end of the year.
E) overstate assets at the end of the year.
60. Which of the following is an example of a project that could be observed in the short run?
A) The construction of a new assembly line to match an existing one.
B) The construction of a new assembly line to take advantage of a new technology.
C) The moving of an established assembly line to bring it geographically closer to a market.
D) The sale of an existing assembly line on the scrap market to finance part of a new facility.
E) None of the above.
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