Assume that the resource market is purely competitive. If the price of the resource falls, other factors constant, then a firm that sells its product in a purely competitive market will:
A. Increase production by a larger amount than a firm with some monopoly power in its product market
B. Increase production by a smaller amount than a firm with some monopoly power in its product market
C. Decrease production by a larger amount than a firm with some monopoly power in its product market
D. Decrease production by a smaller amount than a firm with some monopoly power in its product market
A. Increase production by a larger amount than a firm with some monopoly power in its product market
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Firms pay famous individuals to endorse their products because
A) famous people only consume high-quality products. B) apparently demand is affected not just by the number of people who use a product but also by the type of person that uses the product. C) famous people obviously know what are the best goods and services. D) the firms are irrational and are wasting advertising expenditures.
Which of the following was true with regard to the Great Depression?
a. The policies of the New Deal brought the Great Depression to an end well before World War II. b. Sound economic policy was followed during this era, which makes the length and severity of the Great Depression puzzling to economists. c. The length and severity of the Great Depression was the result of unsound economic policies followed by both the Hoover and Roosevelt Administrations. d. The Great Depression was largely the result of the highly expansionary monetary policy of the Fed during the 1930s.
Net capital outflow measures the imbalance between the amount of
a. foreign assets held by domestic residents and domestic assets held by foreign residents. b. foreign assets bought by domestic residents and the amount of domestic assets bought by foreigners. c. foreign assets bought by domestic residents and the amount of domestic goods and services sold to foreigners. d. None of the above is correct.
Which of the following is a barrier to economic growth in many developing nations?
A. the lack of natural resources B. the lack of economic freedom C. the low level of restrictions in the labor market D. the shortage of labor