In the graph shown, what would eliminate a trade deficit if there were one?
A. Foreign wages rise relative to domestic wages.
B. The exchange rate appreciates.
C. Domestic reservation wages rise.
D. Government runs expansionary policy.
Answer: A
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As the stock of a depletable resource falls, its user cost
A) rises. B) falls. C) is unchanged, but its price rises. D) is unchanged, but the extraction cost rises. E) is unchanged, but its true cost rises.
What ways can entrepreneurs promote technological progress and economic growth?
a. create a new product b. make an existing product better c. find new ways to make old products d. all of the above are ways to promote technological progress and economic growth
You are part of a local community theater group. It is the goal of the group to increase the amount of revenue earned through ticket sales. Mary says the obvious solution is to increase ticket prices. Is Mary correct?
A. Mary is correct if the demand for tickets is price inelastic. B. Mary is incorrect if the demand for tickets is price inelastic. C. Mary is correct. The increase in ticket prices will always increase revenue. D. Mary is incorrect. The increase in ticket prices will never increase revenue.
If the demand for a firm's output is perfectly elastic, then the firm's Lerner Index equals
A) zero. B) one. C) infinity. D) one-half.