Food and gasoline can be classified as
A. capital goods.
B. durable goods.
C. long-term goods.
D. nondurable goods.
Answer: D
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Which of the following correctly comments on the following statement? "The only way to increase the revenue from selling a product is to increase the product's price."
A) This statement is not true. Revenue will increase as the price of the product increases only if demand is inelastic. B) It is not true. Revenue will increase as the price of the product increases only if demand is elastic. C) This statement is not true. Revenue will decrease as the price of the product increases because quantity demanded will fall. D) The statement is true.
Refer to above figure. Two countries exist in this model, P and R. P is relatively labor (L) abundant, as is evident in the bottom right horizontal axis
If Country P were to be completely specialized in the labor-intensive product, C, it would be producing at point 4. In fact, it produces both C and P, at point 5. The (autarky) relative price of C (in terms of F) of Country P is at point 3; and of Country R at point 1. If trade were to open up between these two countries, which would export C and which would export F? Is this consistent with the Heckscher-Ohlin model? Explain.
A period of time in which the quantity of at least one factor of production used by a firm is fixed is called the
A) market period. B) intermediate run. C) short run. D) long run.
Suppose real GDP is $13 trillion, potential real GDP is $13.5 trillion, and Congress and the president plan to use fiscal policy to restore the economy to potential real GDP
Assuming a constant price level, Congress and the president would need to increase government purchases by A) less than $500 billion. B) $500 billion. C) more than $500 billion. D) None of the above are correct. Congress must act to decrease government purchases in this case.