All else constant, an increase in the number of buyers in the market for cell phone service would cause: A) equilibrium price and quantity to increase. B) equilibrium price and quantity to decrease. C) equilibrium price to increase and equilibrium quantity to decrease. D) equilibrium price to decrease and equilibrium quantity to increase. ANSWER […]
________ markets transfer funds from people who have an excess of available funds to people who have a shortage. A) Commodity B) Fund-available C) Financial D) Derivative exchange ANSWER C
Diseconomies of scale are illustrated graphically by an upward shift of the firm’s long-run average cost curve. Indicate whether the statement is true or false ANSWER FALSE
Increase in business taxes will ________ the expenditure curve: A) decrease. B) increase. C) not change. D) none of the above. ANSWER A
As a currency depreciates: 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 A
Price coordination among firms will be more difficult when there are substantial differences among the cost structures of the competing firms and the technologies they employ. Indicate whether the statement is true or false ANSWER TRUE
One of the primary sources of diseconomies of scale is the inefficiencies associated with managing large scale operations. Indicate whether the statement is true or false ANSWER TRUE
A key factor in producing high economic growth is A) eliminating foreign trade. B) well-functioning financial markets. C) high interest rates. D) stock market volatility. ANSWER B
The results of studies of the tobacco industry suggests that college and secondary school students who smoke are much more likely to respond to a change in price than adults who smoke. Indicate whether the statement is true or false ANSWER TRUE
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
