Even though local newspapers are very inexpensive, people rarely buy more than one of them each day. This fact:
A. is an example of irrational behavior.
B. implies that electronic media sources are displacing print sources for many consumers.
C. contradicts the economic perspective.
D. implies that, for most people, the marginal benefit of reading a second newspaper is less
than the marginal cost.
Answer: D
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What effect did the decrease in the value of the dollar have on the U.S. trade deficit in the period from 2006 to 2009?
A. It decreased the trade deficit as Americans bought more U.S. capital goods. B. It decreased the trade deficit as foreigners were attracted to the increased value of U.S. products and Americans bought fewer imports. C. It increased the trade deficit as U.S. investors bought more domestic financial assets. D. It increased the trade deficit as Americans bought more imports and foreigners bought fewer U.S. products.
A sudden fall in the market demand in a competitive industry leads to
a. A short run market equilibrium price higher than the original equilibrium b. A market equilibrium price lower than the short run price c. Some firms exiting the market d. All of the above
The basics of the welfare state in the United States started as part of:
A. reparations after WWI in the late 1910s. B. the Bretton Woods plan after WWII in the 1940s. C. the New Deal legislation in the 1930s. D. the Great Recession Recovery and Aid Acts in the 2000s.
An increase in an economy's productive resources will lead the production possibilities curve to:
A. shift outward. B. become flatter. C. shift inward. D. stay the same.