The price of good A goes up. As a result, the demand for good B shifts to the left. From this we can infer that:
A) good A is used to produce good B.
B) good B is used to produce good A.
C) goods A and B are substitutes.
D) goods A and B are complements.
E) none of the above
D
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The World Trade Organization (WTO) promotes foreign trade and investment, or globalization. In recent years opposition to globalization has led to violent protests at meetings of the WTO. One reason for these anti-globalization protests is
A) protesters believe that free trade destroys the distinctive cultures of many countries. B) protesters believe that globalization will result in a return to communism in developing countries. C) protesters object to the loss of intellectual property (such as software programs and movies) that results from foreign trade and investment. D) foreign trade and investment are examples of zero-sum games.
Refer to above figure. What would be the cost of the subsidy to European taxpayers?
What will be an ideal response?
If the efficient-market hypothesis is true, then the idea of:
A. herd instinct holds. B. herd instinct doesn't always hold. C. tulip mania holds. D. tulip mania doesn't always hold.
If the typical firm in a perfectly competitive market is earning positive economic profits then which of the following would be expected to happen?
a. Firms will exit the market. b. New firms will enter the market. c. There will be neither entry nor exit in this market. d. There will soon be a depression in the market.