Over the next few years the number of buyers in the market for sport utility vehicles decreases sharply. As a result, Question 4 options:
A. there is a movement downward along the demand curve for sport utility vehicles.
B. the demand curve for sport utility vehicles shifts leftward.
C. the demand curve for sport utility vehicles shifts rightward.
D. there is neither a shift nor a movement along the demand curve for sport utility vehicles.
B. the demand curve for sport utility vehicles shifts leftward.
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All of the following would be potential problems if developing nations around the world emphasized export promotion EXCEPT
A) industrial nations may be unable to absorb the exports of many newly industrializing nations. B) it would be much harder to emphasize exports under the WTO framework if the emphasis in exports requires some kind of subsidies. C) export growth may not add to GDP if it crowds out growth in output of goods for domestic consumption. D) export promotion by many countries may lead to economic conflicts. E) current research has clearly established that there is no causal connection between exports and faster economic growth.
Which is a likely characteristic of a differentiated oligopolistic market?
A. The market demand curve is inelastic. B. Price and output decisions of firms are interdependent. C. There are minimal barriers to entry. D. There is minimal advertising expenditure.
Freely functioning markets in the real world always result in efficient allocations of resources.
Answer the following statement true (T) or false (F)
If the short-run average variable cost of production for a firm is decreasing, then it follows that:
A. Average variable cost must be above average fixed cost B. Marginal cost must be below average variable cost C. Average fixed cost must be constant D. Marginal cost must be decreasing