Consumption depends on:
A. total income.
B. disposable income.
C. pre-tax income.
D. Consumption is unrelated to income.
B. disposable income.
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When box office receipts are corrected for inflation, the most popular movie of all time is
a. Star Wars. b. Titanic. c. Gone With the Wind. d. The Sound of Music.
A German company wants to buy dollars to purchase U.S. bonds. In the open-economy macroeconomic model of the U.S., this transaction would be accounted for in
a. the supply of currency in the foreign exchange market, and the supply of loanable funds. b. the supply of currency in the foreign exchange market, and the demand for loanable funds. c. the demand for currency in the foreign exchange market, and the supply of loanable funds. d. the demand for currency in the foreign exchange market, and the demand for loanable funds.
Refer to the graph shown depicting a monopolistically competitive firm. The marginal cost curve is represented by curve:
A. A. B. B. C. C. D. D.
Under some circumstances, trade could stifle the development of new industries and reduce global efficiency. All of the following describe conditions that could lead to that situation EXCEPT
A) an initial head start gives a scale advantage to already existing firms in one country. B) diseconomies of scale make it impossible for new firms to enter the market. C) a location has a better-developed linkage between suppliers and producers, giving it a cost advantage. D) a historical accident, such as the shifting of airplane production to the United States to avoid World War II bombings, causes firms in one location to have a competitive advantage.