Suppose Ford, GM, and Dodge make the majority of pick-up trucks sold in the United States If they all sell for approximately the same price, and Ford offers a $2,000 rebate on new truck sales, what can Ford expect to see?
a. an unprecedented increase in truck sales
b. an immediate response by GM and Dodge
c. a visit from the antitrust authorities of the government
d. a revolution from Ford stockholders
e. announcements by GM and Dodge that plans are underway to produce a much cheaper pick-up truck in six years
b
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Use the following table to answer the question below.Giovanni's Production Possibilities ScheduleJorge's Production Possibilities SchedulePounds of Green BeansPounds of CornPounds of Green BeansPounds of Corn0160032040120202408080401601204060801600800Giovanni should specialize in the production of which good?
A. green beans B. corn C. both D. neither
In an open economy, the government purchases multiplier will be smaller the
A) larger the marginal propensity to consume. B) smaller the marginal propensity to import. C) larger the tax rate. D) All of the above are correct.
A doorknob manufacturer sells 400 doorknobs at a price of $10 each. It has total costs of $4,500, of which $700 are fixed costs. This means the firm
a. has an economic profit of $500 b. should produce in the short run at a loss c. should shut down in the short run d. has total variable costs of $500 e. has price less than average variable cost
If a country runs a current account surplus and national private savings equals domestic investment, then the combined governmental accounts
A) must be balanced. B) must be positive. C) must be negative. D) could be either negative or positive, depending on the net international investment position.