Studies strongly suggest that advertising strategies are generally much more effective than pricing strategies as a means to increase market share. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
Domestic currency depreciation will: A) help domestic firms that export and hurt domestic firms that import. B) help domestic firms that import. C) hurt domestic firms that export and help domestic firms that import. D) hurt domestic firms that export. ANSWER A
Date: September 10th, 2020
Decrease in the real interest rate will ________ the expenditure curve: A) decrease. B) increase. C) not change. D) none of the above. ANSWER B
Date: September 10th, 2020
“Learning by doing” results in decreased average costs of production and is illustrated by a downward shift of the firm’s long-run average cost curve. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
Of the various models of noncooperative oligopoly behavior discussed in the text, which one has the greatest shortcoming when it comes to explaining observed behavior in an oligopoly market What will be an ideal response? ANSWER The kinked demand curve model is built around an assumed market price that currently exists for the market’s […]
Date: September 10th, 2020
Increase in consumer confidence will ________ the expenditure curve: A) decrease. B) increase. C) down. D) none of the above. ANSWER B
Date: September 10th, 2020
Referring to the previous question, what will happen to the equilibrium price and quantity of cars? A) They will stay the same as domestic producers replace the cars once imported. B) The shortage will cause the equilibrium price to increase and equilibrium quantity will decrease. C) The surplus will cause equilibrium price to decrease and […]
Date: September 10th, 2020
The bond markets are important because they are A) easily the most widely followed financial markets in the United States. B) the markets where foreign exchange rates are determined. C) the markets where interest rates are determined. D) the markets where all borrowers get their funds. ANSWER C
Date: September 10th, 2020
When a consumer moves from a lower to a higher indifference curve, the marginal rate of substitution automatically increases. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
Imports are: A) positively related to income in the rest of the world and currency appreciation. B) positively related to income in the rest of the world and currency depreciation. C) positively related to domestic income and currency appreciation. D) positively related to domestic income and currency depreciation. ANSWER C
Date: September 10th, 2020
