When the foreign price level falls, domestic goods become more expensive relative to foreign goods, causing domestic net exports and aggregate demand to fall
a. True
b. False
Indicate whether the statement is true or false
True
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Figure 4.3 illustrates the demand for tacos. Assume that tacos and beer are complements. A decrease in the price of beer would bring about a movement from
A) point a to point c. B) point c to point a. C) D2 to D0. D) D0 to D2.
The positive effect of having more potential volunteers resulting in a greater likelihood of a beneficial outcome is known as the
A) diffusion effect. B) externalizing effect. C) group dynamic effect. D) size effect.
A common characteristic of oligopolies is:
a. interdependence in pricing decisions. b. independent pricing decisions. c. low industry concentration. d. few or no plant-level economies of scale.
A black market could arise as a result of:
A. The imposition of a legal price floor below the equilibrium price B. The imposition of a legal price ceiling above the equilibrium price C. The imposition of a legal price floor at the equilibrium price D. The imposition of a legal price ceiling below the equilibrium price