Which of the following best represents the effects of a decrease in the price of tomato juice, other things being equal?
A. An upward movement along the demand curve for tomato juice.
B. A downward movement along the demand curve for tomato juice.
C. A rightward shift in the demand curve for tomato juice.
D. A leftward shift in the demand curve for tomato juice.
Answer: B
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If Toni has an absolute advantage in both sewing and ironing when compared to Tom, then
A) they might benefit from trading, but we need more information to determine in which task they should specialize. B) neither Toni nor Tom can benefit from trading with each other. C) Toni should specialize in sewing, and Tom should specialize in ironing. D) Toni cannot benefit from trading with Tom, but Tom can benefit from trading with Toni. E) Tom cannot benefit from trading with Toni, but Toni can benefit from trading with Tom.
Elasticity of demand is likely to be higher for less-expensive goods, other things being equal
a. True b. False Indicate whether the statement is true or false
Which one of the following decisions most clearly reflects a lack of understanding of the concept of sunk costs?
a. You pay to have your car towed back to the repair shop because it was not fixed properly the first time. b. You decide to get a master's degree because you cannot find a job in the field in which you majored. c. You decide to purchase a piece of machinery for your business that will eliminate three employees' positions. d. You study eight hours for a final exam even though there is no way now that you can pass the course.
During the German hyperinflation after World War I, transactions costs skyrocketed. As a result, not surprisingly, output
A) increased dramatically. B) grew at a much smaller pace than prior to the war. C) did not change. D) declined sharply.