In an economy like the United States, the impact of a decrease in import prices on overall inflation can be best described as:
A. a modest increase.
B. nonexistent.
C. a significant decrease, particularly as globalization and trade increase.
D. a modest decrease.
Answer: D
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Which of the following contributes to economic growth?
A) increase in environmental protection policies B) increase in labor regulations restricting the hours of overtime allowed C) increase in labor productivity D) increase in consumer spending
A major characteristic of monopoly is that
A) no barriers to entry exist. B) the product is identical to that produced by other companies. C) a barrier to entry keeps out competitors. D) competition is intense. E) a few firms compete with each other.
If both the supply and demand curves shift simultaneously, we can always predict what will happen to
A) both the price and the quantity. B) either the price or the quantity, but not both. C) only the price. D) only the quantity. E) neither the price nor the quantity.
If all the return to a resource is economic rent, we know that
A) the price of the resource is below its opportunity cost. B) the price of the resource equals its opportunity cost. C) the price of the resource is above its opportunity cost. D) the resource has no opportunity cost.