If the inflation rate in Japan is higher than the inflation rate in the United States
A) there will be an increase in U.S. imports from Japan.
B) there will be an increase in Japanese exports to the United States.
C) there will be no change is U.S. imports from Japan.
D) there will be a decrease in U.S. imports from Japan.
D
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Which of the following is true when a Nash equilibrium is reached in a duopoly with homogeneous products?
A) Both the firms earn positive economic profits. B) Each firm charges a price equal to its average fixed cost. C) Both the firms earn zero economic profits. D) Both firms incur huge losses.
The idea of the "invisible hand" tells us that individuals will pursue:
A. mutually beneficial trades with other individuals to maximize surplus. B. trades in which they will be the clear winner and the other will be a loser. C. the most equitable outcome possible. D. as few government policies as possible so the market can act freely.
Last year, Alice bought 40 CDs when her income was $20,000 . This year, her income increased to $25,000 . and she purchased 48 CDs. We can conclude that:
a. Alice's price elasticity of demand for CDs is equal to 1. b. Alice's demand for CDs is price-inelastic. c. Alice's demand for CDs is price-elastic. d. the income elasticity of demand for CDs is negative. e. CDs are a normal good.
The demand curve for a product might shift as the result of a change in:
A. consumer incomes. B. consumer tastes. C. the prices of related goods. D. all of these.