The demand for Chocolate Chip Cookie Dough ice cream is likely quite elastic because
a. ice cream must be eaten quickly.
b. this particular flavor of ice cream is viewed as a necessity by many ice-cream lovers.
c. the market is broadly defined.
d. other flavors of ice cream are good substitutes for this particular flavor.
D
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Lending abroad represents:
A. positive net savings. B. a capital outflow. C. a capital inflow. D. none of the above.
A production possibilities curve shows the relationship between:
A) the price of a good and its quantity supplied. B) the maximum production of one good for a given level of production of another good. C) the different combinations of two inputs used to produce a given quantity of output. D) the quantity of output produced and the amount of inputs required for the production of the output.
When a Japanese automaker makes a profit on a plant located in the United States, this enters into the U.S. balance of payments in the category of
a. merchandise exports b. merchandise imports c. income receipts on foreign investments d. income payments on foreign investments e. unilateral transfers
In regulated industries, the optimal regulation is to set price such that MC=P.
Answer the following statement true (T) or false (F)