A decrease in input costs to firms in a market will result in a(n)
a. decrease in equilibrium price and an increase in equilibrium quantity.
b. decrease in equilibrium price and a decrease in equilibrium quantity.
c. increase in equilibrium price and a decrease in equilibrium quantity.
d. increase in equilibrium price and an increase in equilibrium quantity.
Answer: a. decrease in equilibrium price and an increase in equilibrium quantity.
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The spread between the interest rates on bonds with default risk and default-free bonds is called the
A) risk premium. B) junk margin. C) bond margin. D) default premium.
When two ice cream vendors locate next to each other on the beach, they are exhibiting a Nash equilibrium
a. True b. False Indicate whether the statement is true or false
An appreciation of the exchange value of the U.S. dollar would:
a. increase the dollar prices of U.S. imports and the foreign cost of exports from the U.S b. decrease the dollar prices of U.S. imports and the foreign cost of exports from the U.S. c. increase the dollar prices of U.S. imports, but decrease the foreign cost of exports from the U.S. d. decrease the dollar prices of U.S. imports, but increase the foreign cost of exports from the U.S.
If the price of good X is $90 and the price of good Y is $30, it follows that the relative price of one unit of good Y is ___________ unit(s) of good X
A) 0.33 B) 1.33 C) 3.00 D) 2.00 E) There is not enough information to answer the question.