In Latavia, cultural pressures cause voluntary donations to orphanages to be very large; in Slobovia, people make smaller donations. If the governments of both countries suddenly grant a tax break to those donating money to orphanages, the basic postulate of economics predicts that donations
What will be an ideal response?
in both nations will increase
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Farming in poor countries is considered to be ___________ intensive because __________.
A. labor; labor is typically relatively cheaper than machinery in poor countries B. capital; the labor used is concentrated, spread thinly across a lot of capital C. labor; the tools in poor countries are more plentiful than the people D. capital; the tools in poor countries are relatively cheaper than the cost of using people in poor countries
Perfectly competitive firms are known for being "price makers."
a. True b. False Indicate whether the statement is true or false
Answer the following statement true (T) or false (F)
1) Extensive network effects may drive a market toward natural monopoly because consumers tend to choose a common, standard product that everyone else is using. 2) Price discrimination occurs whenever a firm sells a good for two different prices. 3) Price discrimination will result in consumers with more elastic demand purchasing more of the good than when a single price is charged to all consumers in the market. 4) Successful price discrimination requires that buyers charged the different prices be physically separated. 5) Price discrimination is illegal in the United States under antitrust regulations.
If the real interest rate increases
A. there will be a movement upward along the investment demand curve. B. the investment demand curve will shift to the left. C. the investment demand curve will shift to the right. D. there will be a movement downward along the investment demand curve.