If the price of computers decreases, then the:
A. sales of a substitute, such as a telephone, increase.
B. sales of a substitute, such as a telephone, decrease.
C. inventory of computer software increases.
D. inventory of computers increases.
Answer: B
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Amy can produce either 5000 pounds of cheese or 20 cars per year. Mike can produce either 5000 pounds of cheese or 10 cars per year. By the principle of comparative advantage, Mike should specialize in producing
A. cars. B. neither cheese nor cars. C. both cheese and cars. D. cheese.
Discuss how the Fed raising the federal funds rate ripples through the different sectors of the economy
What will be an ideal response?
The efficient quantity of a public good is the quantity that has the highest possible marginal social benefit
Indicate whether the statement is true or false
A perfectly competitive firm will minimize its losses by shutting down when:
A) P < AVC at the profit-maximizing level of output. B) P < ATC at the profit-maximizing level of output. C) P < MC at the profit-maximizing level of output. D) P < TFC at the profit-maximizing level of output.