An increase in supply will cause a decrease in price, which will cause an increase in demand
a. True
b. False
Indicate whether the statement is true or false
False
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Which one of the following is TRUE?
A) New growth theory suggests that there is no connection between the level of education in a country and its rate of economic growth. B) New growth theory suggests that education benefits only those people who receive it, and not the population as a whole. C) Investments in secondary education produce gains in the form of economic growth. D) Secondary education does not boost economic growth in developing nations, because so much of the workforce remains in agriculture.
Suppose Lefty has utility characterized by the equation: U l = 3I 1/2 , where I is income. In addition, Righty has utility characterized by the equation: U r = 4I 1/2 , where I is income.
(A) If each had $100,000, which one would have the higher level of utility? (B) Illustrate Lefty's and Right's utility functions. (C) What equal amount of income could we give to both that would also give them the same level of utility?
Computer forecasting models are most accurate at predicting the economy when
a. inflation is accelerating. b. there is a turn in the business cycle. c. economic conditions are relatively stable. d. supply shocks impact the economy.
Which of the following examples illustrates a horizontal merger?
a. an online retailer merges with a shipping company b. a turbine manufacturer merges with a bank c. a paper product manufacturer merges with a timber producer d. a steel producer merges with another steel producer