If the cost of transportation increases by 20 percent, then, other things the same, the CPI is likely to increase by about
a. 0.3 percent.
b. 1.6 percent.
c. 3.2 percent.
d. 10 percent.
c
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Most countries historically run a trade surplus or deficit that is less than 5% of GDP.
Select whether the statement is true or false. A. True B. False
Factors of production are:
A) the resources the economy has available to produce goods and services. B) generally unlimited in modern economies. C) always employed in modern economies. D) the knowledge that can be applied to the production of goods and services.
Perfect competition exists in a market if
A) there are many firms producing an identical product. B) there are many firms producing a similar product, each of which may have unique features. C) the firm is protected by a barrier to entry. D) the firm is always at the break-even point where it is earning only a normal profit.
Advertising is the action of a firm that is intended to maintain the differentiation of its product over time
Indicate whether the statement is true or false