Which of the following would not cause the market supply of cell phones to change?
A. Taxes levied on cell phone production are reduced.
B. Telecommunications are deregulated, and anyone who wants to can produce and sell cell phones.
C. A reduction in the demand for cell phones causes the price to fall.
D. A cheaper technology for producing plastics used in producing cell phones is developed.
Answer: C
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A monopolistically competitive firm has excess capacity because in the
A) short run its MR exceeds its MC. B) short run its ATC is less than its AVC. C) long run its ATC exceeds its minimum ATC. D) long run it makes an economic profit.
Assume a money multiplier of 4 and a government expenditure of $20 million. If the Treasury borrows $20 million from the banking system while the banks have excess reserves, the money supply will
A) rise by $5 million. B) rise by $20 million. C) rise by $80 million. D) not be affected.
Trade barriers are forms of protection that shield some sector of the economy from foreign competition.
Answer the following statement true (T) or false (F)
Emma, 23, just graduated from college in Child, Youth and Family Studies and has been working in outreach for the past 12 months. She doesn't make a lot of money at her job, but she learned in her financial management class that she should do what she can to save and invest her money for her future financial goals. Currently, in her budget, she has been able to save $50.00 each month and at the end of her first year of working, she has accumulated $600.00. She has decided to invest her $600.00 in a Certificate of Deposit that will pay annual interest rate of 3% if she leaves the money on deposit (in the account) for 4 years. Use the information provided above to fill in the Future Value (FV) formula: FV = PV*(i+1.0)n