The use of abstraction in economics is analogous to the use of a road map providing directions to a location
a. True
b. False
Indicate whether the statement is true or false
True
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Use the following graph to answer the next question.
If Canadian investors buy more U.S. financial and real assets, ________.
A. the demand curve will shift right B. the demand curve will shift left C. the supply curve will shift right D. the supply curve will shift left
Assume that the market demand for a good is p = 100 - Q. Assume that the marginal product of labor is 1 and the firm can get all the labor it needs at a wage equal to 5
Compare the quantity of labor hired if the output market is competitive with the quantity hired if the output market is a monopoly.
Which of the following is most likely to generate a surplus?
A) a price floor B) a price ceiling C) an illegal market D) all of these
The more firms there are in a market, the:
A. larger will be the price effect of one firm's output decision. B. smaller will be the price effect of one firm's output decision. C. more collusion is likely to happen. D. None of these statements is true.