Referring to Figure 18.3, the effect of an increase in U.S. interest rates is represented by a movement from point:
A. a to d.
B. c to b.
C. a to b.
D. d to c.
Answer: B
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"Laboratories of democracy" refers to the fact that having many governments at different levels _____
a. allows for experimentation b. allows for replication of successful policies c. allows for the optimal provision of scientific knowledge d. a and b
What are the five major reasons for government involvement in a market economy?
What will be an ideal response?
With marginal cost pricing
A) marginal benefits are usually less than marginal cost. B) all opportunity costs will be covered in the short run. C) the price charged is equal to the opportunity cost to society of producing one more unit of the good. D) there cannot be any short-run economic profit.
In comparing an oligopolistic firm to a perfectly competitive firm it is generally assumed that the price charged by the competitive firm will be higher than the price charged by the oligopolistic firm
Indicate whether the statement is true or false