If the foreign income decrease, then we might expect net export spending to:
A. remain constant.
B. increase.
C. decrease.
D. there is not enough information to determine what would happen.
Answer: C
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What are the economic effects of a currency depreciation?
A. It will decrease aggregate demand and aggregate supply, so that output will certainly fall, and prices may fall as well. B. It will increase aggregate demand and aggregate supply, so that output will certainly rise, and prices may rise as well. C. It will increase aggregate demand and decrease aggregate supply, so that prices will certainly rise, and output may rise as well. D. It will decrease aggregate demand and increase aggregate supply, so that prices will certainly fall, and output may fall as well.
Which of the following statements is true?
A. If a good is nonrivalrous in consumption then it is nonexcludable, too. B. A good can be rivalrous in consumption but not nonexcludable, too. C. An apple is nonrivalrous in consumption. D. Many economists maintain that the market fails to produce nonexcludable private goods. E. none of the above
Which of the following is true?
a. To reduce cannibalization among products, reposition a product so that it does not directly compete with the other b. After acquiring a substitute product, raise prices on both the products c. After acquiring a complementary product, lower prices on both the products d. All of the above
A firm would decide to shut down if its production resulted in
A) MR < ATC. B) ATC > AVC. C) AFC > AVC. D) MR < AVC.