As a currency appreciates: A) exports increase and imports decrease. B) exports decrease and imports increase. C) exports increase and imports increase. D) exports decrease and imports decrease. ANSWER B
Date: September 10th, 2020
Assume there is an improvement in the technology used to produce Blu-ray disc players. What could be expected to happen to the equilibrium price and quantity in the market for Blu-ray disc players? A) Equilibrium price would increase and equilibrium quantity would decrease. B) Equilibrium price and quantity would both decrease. C) Equilibrium price would […]
Date: September 10th, 2020
Referring to the previous question, which of the following best describes the adjustment to the new market equilibrium? A) Price would fall, causing quantity supplied to decrease until the new equilibrium is reached. B) Price would rise, causing quantity supplied to increase until the new equilibrium is reached. C) Price would fall, causing quantity supplied […]
Date: September 10th, 2020
Poorly performing financial markets can be the cause of A) wealth. B) poverty. C) financial stability. D) financial expansion. ANSWER B
Date: September 10th, 2020
The price elasticity of demand for pleasure travel (-1.9 ) and business travel (-0.8 ) suggests that air travel for pleasure is a luxury and air travel for business is a necessity. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
Decrease in government spending will ________ the expenditure curve: A) decrease. B) increase. C) not change. D) none of the above. ANSWER A
Date: September 10th, 2020
Markets in which funds are transferred from those who have excess funds available to those who have a shortage of available funds are called A) commodity markets. B) fund-available markets. C) derivative exchange markets. D) financial markets. ANSWER D
Date: September 10th, 2020
In the market for a normal good, what is the ultimate market reaction of suppliers to an increase in the incomes of consumers? A) Suppliers do not react, because a change in income shifts the demand curve, not the supply curve. B) The supply curve shifts to the right. C) The supply curve shifts to […]
Date: September 10th, 2020
A firm acting as a price leader would never reduce market price because this would clearly make all of the firms in the market worse off and defeat the purpose of having a firm act as the price leader. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
Assume that as a firm expands its scale of operation, the minimum point of its short-run average total cost curve is unchanged. In this case, we would say that the firm is experiencing diseconomies of scale. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
