If the price of a good rises by 10 percent and quantity demanded falls by 20 percent, we can predict that
A. The company's total profit will rise.
B. The company's total revenue will remain the same.
C. The company's total revenue will increase.
D. The company's total revenue will decrease.
Answer: D
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Suppose that in Paraguay, one of the poorest countries in the Americas, only two of the goods that are produced can compete in world markets, tea and DVD players. Given this success in exporting, Paraguay
a. should specialize only in DVD players since tea production is an old industry. b. should specialize in the production of tea, since its people are probably too poor to buy DVD players. c. should stop exporting both goods and produce more food products for its people. d. is better off producing both goods in which it has a comparative advantage, relative to all other goods.
A production possibilities frontier will shift inward if there is more unemployment of labor
a. True b. False
In the long run, if the output of a firm is zero then its total cost will be equal to its total fixed cost
a. True b. False Indicate whether the statement is true or false
Other things the same, an increase in the real exchange rate raises U.S. net exports
a. True b. False Indicate whether the statement is true or false