The United States imports garments from third world countries. This means that if the U.S. economy were closed, the domestic price of goods would be ________ the world price of garments.
A. close to
B. less than
C. greater than
D. equal to
Answer: C
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Which of the following would be most likely to happen if salaries for physicians were dramatically reduced?
a. Patients would receive better care. b. Insurance companies would merge. c. More colleges would offer medical studies. d. Fewer people would go to medical school.
If there are strong expectations of future economic growth, then the:
A. economy will move to the right along the existing consumption function. B. economy will move to the left along the existing consumption function. C. consumption function will shift downward. D. investment demand curve will shift upward.
The fact that a purely competitive firm's total revenue curve is linear and upsloping to the right implies that:
A. product price increases as output increases. B. product price decreases as output increases. C. product price is constant at all levels of output. D. marginal revenue declines as more output is produced.
Which of the following is a price floor?
A) rent controls B) minimum wage rates C) a freeze on upward-moving gasoline prices D) college tuition caps