In competitive price-taker markets, if one firm raises its price,
a. others will follow
b. that firm will increase its revenues
c. that firm will lose revenues because other firms will not follow
d. all consumers will be adversely affected
e. the market demand curve will shift
C
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This Application emphasizes the importance of
A) economic incentives. B) wealth distribution. C) literacy rates. D) none of the above.
Although the pegged exchange rate between the yuan and the dollar has ________ the yuan, China had been reluctant to abandon the peg for fear that abandoning the peg would ________
A) overvalued; reduce exports B) undervalued; reduce imports C) overvalued; increase imports D) undervalued; reduce exports
Figure 36-7
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In Figure 36-7, there are three aggregate expenditure functions (C + I + G + X? IM) for an open economy. Which of the following would cause a movement from A to B?
A. a European economic expansion B. A decrease in the money supply C. An increase in the interest rate D. An increase in the U.S. price level
What is the income effect for leisure demand?
What will be an ideal response?