An increase in the supply of music downloads indicates that more music downloads will be
A. supplied, even if prices of music downloads stayed the same.
B. demanded, because sellers are putting music downloads on sale.
C. demanded, because sellers are selling more music downloads.
D. supplied, because music download prices have decreased.
Answer: A
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The relative price of goods in two countries is known as the ________
A) nominal exchange rate B) real exchange rate C) domestic price level D) real interest rate
One reason that firms will experience increasing returns to scale is:
A. the law of diminishing marginal returns. B. the specialization of inputs as scale increases. C. there is some fixed input that isn't being taken into consideration. D. large firms may be difficult to manage effectively.
Refer to the accompanying figure.
In the figure, a business cycle trough is shown by which point(s)?
A. A only B. A and C and E C. D only D. B and D
Can you think of an example of a good whose demand could be perfectly inelastic?
What will be an ideal response?