If inventories are being depleted, firms may respond by cutting prices

a. True
b. False
Indicate whether the statement is true or false


False

Economics

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In the above table, the average propensity to save when disposable income is $5,000 is

A) -0.1. B) 0.1. C) 0.0. D) 0.2.

Economics

The table above gives data for the nation of Pearl, a small island in the South Pacific. If a supply shock decreases the quantity of real GDP supplied by $6 billion at each price level, the new equilibrium real GDP is

A) $16 billion. B) $19 billion. C) $22 billion. D) $23 billion. E) $17 billion.

Economics

An income tax in which the average tax rate increases with income is called a

A) regressive income tax. B) proportional income tax. C) flat-rate income tax. D) progressive income tax.

Economics

Assume the United States televison manufacturing industry accuses the Japanese television manufacturers of dumping. Why should consumers not necessarily be worried about this practice?

What will be an ideal response?

Economics