The suggestion that a seller will try to set price based on “what the market will bear” is explicit recognition of the constraint imposed by: A) the firm’s marginal cost of production. B) the price elasticity of demand for that item. C) the firm’s competitors. D) the need for most firms to earn positive economic […]
Date: September 10th, 2020
The difference between interest income or receipts earned on investments in the rest of the world by the residents of a given country and the payments to foreigners on investments they have made in a given country is called: A) unilateral transfers. B) net investment income. C) capital expenditures. D) none of the above. […]
Date: September 10th, 2020
Over the past several decades, technological change has led to a significant amount of consolidation in the U.S. brewing industry. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
Explain why the price elasticity of demand varies along a demand curve, even if the demand curve is linear. What will be an ideal response? ANSWER As we move down a demand curve, the percentage change in price (quantity) varies. When price is relatively high, a one unit change in price is small in […]
Date: September 10th, 2020
When measuring the actual output produced in an economy, one should focus on GDP measured in nominal terms. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
A trade deficit means: A) the country has positive net savings, which it lends abroad. B) the country has negative net savings, which it lends abroad. C) the country has positive net savings, which it borrows from abroad. D) the country has negative net savings, which it borrows from abroad. ANSWER D
Date: September 10th, 2020
Assuming there is a rise in supply of copper, if the market for copper is allowed to adjust, the ultimate result will be: A) an increase in price and an increase in the quantity demanded. B) an increase in price and an increase in the quantity supplied. C) a decrease in price and an increase […]
Date: September 10th, 2020
Everything else held constant, an increase in interest rates on student loans A) increases the cost of a college education. B) reduces the cost of a college education. C) has no effect on educational costs. D) increases costs for students with no loans. ANSWER A
Date: September 10th, 2020
Summarize the three conditions cited in the text under which a cartel is most likely to succeed. Of these three, which do you think is most important? Why? What will be an ideal response? ANSWER A cartel agreement has the greatest chance of success when the cartel can raise the price of its product […]
Date: September 10th, 2020
Which of the following best describes the influence of successful advertising on the market for aspirin? A) The market demand curve shifts to the right, creating a shortage at the original equilibrium price. B) Individuals’ demand curves shift to the right, but the market demand curve remains at its original position. C) The market supply […]
Date: September 10th, 2020
