Suppose that in 2011, 4 million plasma TVs were purchased at $950 each, while in 2012, 3 million plasma TVs were purchased at $800 each. What might have caused this change?
A. The price of LCD TVs (a substitute for plasma TVs) fell.
B. The price of LCD TVs (a substitute for plasma TVs) rose.
C. Plasma TV manufacturing technology increased.
D. Plasma TV manufacturing technology decreased.
Answer: A
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a. government securities. b. saving accounts. c. reserves. d. loans. e. checking account fees.
Microeconomics is the study of
a. how money affects the economy. b. how individual households and firms make decisions. c. how government affects the economy. d. how the economy as a whole works.
The average fixed cost curve
a. always declines with increased levels of output. b. always rises with increased levels of output. c. declines as long as it is above marginal cost. d. declines as long as it is below marginal cost.
The U.S. trade deficit reached its most negative value between ______.
a. 1975 and 1978 b. 1985 and 1988 c. 1995 and 1998 d. 2005 and 2008