The inflow of foreign investment into the United States
A. Signals a lack of confidence in the U.S. economy.
B. Has no effect on the U.S. economy.
C. Diminishes production possibilities for the United States.
D. Stimulates more economic growth for the United States.
Answer: D
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The above figure shows the market for pizza. Which figure shows the effect of an increase in the price of sandwiches, which for consumers are substitutes for pizza?
A) Figure A B) Figure B C) Figure C D) Figure D
A farmer sells sugar to a candy producer for $150 . If the producer uses this sugar to make candy that sells for $200, what is the total contribution to GDP from these transactions?
Mrs. Green is spending all her money income by buying bottles of soda and bags of pretzels in such amounts that the marginal utility of the last bottle is 60 utils and the marginal utility of the last bag is 30 utils. The prices of soda and pretzels are $.60 per bottle and $.40 per bag respectively. It can be concluded that:
A) the two commodities are substitute goods. B) Mrs. Green should spend more on pretzels and less on soda. C) Mrs. Green should spend more on soda and less on pretzels. D) Mrs. Green is buying soda and pretzels in the utility-maximizing amounts.
(Consider This) Which of the following best explains why unemployment rises significantly during a recession?
A. Wages are sticky both upward and downward. B. Wages are flexible both upward and downward. C. Wages are flexible upward but sticky downward. D. Wages are sticky upward but flexible downward.