In a perfectly competitive market, a permanent decrease in demand initially brings a lower price, economic
A) loss, and entry into the market.
B) loss, and exit from the market.
C) profit, and entry into the market.
D) profit, and exit from the market.
B
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If the demand for one good decreases when the price of another good decreases, the two goods are ________ goods
A) normal B) inferior C) complementary D) substitute
In the open-economy macroeconomic model, other things the same, when a U.S. resident imports a foreign good, the demand for dollars in the foreign-currency exchange market decreases
a. True b. False Indicate whether the statement is true or false
Other things the same, which of the following could explain an increase in productivity?
a. either an increase in human capital or an increase in physical capital b. an increase in human capital but not an increase in physical capital c. an increase in physical capital but not an increase in human capital d. neither an increase in human capital nor an increase in physical capital
Most likely, the elasticity of demand for transportation is greater than the elasticity of demand for cars.
Answer the following statement true (T) or false (F)