When a country’s export spending exceeds import spending, the country is experiencing a: A) trade deficit. B) trade surplus. C) budget deficit. D) none of the above. ANSWER B
Date: September 10th, 2020
Although tacit collusion can enhance the price-setting power of the participating firms, it can also result in greater efficiency in production, which also benefits society. Thus, it is not immediately clear, a priori, when tacit collusion actually hurts or helps consumers. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
Well-functioning financial markets promote A) inflation. B) deflation. C) unemployment. D) growth. ANSWER D
Date: September 10th, 2020
Decrease in stock market wealth will ________ the expenditure curve: A) decrease. B) increase. C) not change. D) none of the above. ANSWER A
Date: September 10th, 2020
We would expect the cross price elasticity of demand between digital cameras and film cameras to be positive. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
While the demand for beer is relatively price inelastic, the price elasticity of demand for a particular brand is relatively high, due in large part to availability of close substitutes. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
Decreases in autonomous spending have a contractionary effect and make ________ levels of real income consistent with a given interest rate. A) lower B) higher C) constant D) none of the above. ANSWER A
Date: September 10th, 2020
In the long-run average cost function, only the amount of capital is allowed to vary. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
As the price of milk increases, what happens at the original equilibrium in the market for cereal that signals market participants that the original equilibrium must change? (Milk and cereal are complements.) A) A surplus is created by an increase in supply. B) A surplus is created by a decrease in demand. C) A shortage […]
Date: September 10th, 2020
Financial markets promote greater economic efficiency by channeling funds from ________ to ________. A) investors; savers B) borrowers; savers C) savers; borrowers D) savers; lenders ANSWER C
Date: September 10th, 2020
