Suppose there is an improvement in the technology of producing TVs and the production of TVs becomes an increasingly competitive industry. Assuming that the TV industry is initially in equilibrium, the long-run effect of this improvement is:
A. higher TV prices and greater TV production.
B. lower TV prices and lower TV production.
C. lower TV prices and greater TV production.
D. higher TV prices and lower TV production.
Answer: C
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In the late 1800s and early 1900s, the primary source of energy for manufacturing was
a. coal. b. petroleum. c. water. d. electricity.
Because people's wants are unlimited but resources are scarce,
a. only the rich get everything they want b. choices must be made c. there will be more services produced than goods d. people search for spiritual fulfillment rather than material fulfillment e. poor people never get anything they want
When an individual's consumption of a good does not prevent others from consuming the same good, then that good is classified as _____
a. excludable b. rival c. non-excludable d. non-rival
Which of the following would be most likely to increase transaction costs?
a. A new mall opens bringing together area merchants at one location. b. A city ordinance bans large superstores in order to protect small, local businesses. c. A canal is constructed, allowing ships to reduce travel time by 50 percent. d. A website quickly connects new students to people who are seeking roommates.