When Sophie, a French citizen, purchases a Dell computer in Paris, France that was produced in Texas, the purchase is
A) both a U.S. and a French import.
B) a U.S. import and a French export.
C) a U.S. export and a French import.
D) neither an export nor an import for either country.
Answer: C
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The self-correcting tendency of the economy means that rising inflation eventually eliminates:
A. unemployment. B. exogenous spending. C. recessionary gaps. D. expansionary gaps.
Suppose the current equilibrium price of pizza is $5 . If the government decides the price of pizza cannot rise above $4, the result of this policy would be
a. a shortage b. a surplus c. that the market would remain in equilibrium but with a larger quantity bought and sold than at $5 d. at the $4 price, the quantity sold would be greater than the quantity bought e. a shift of demand to the right
Effluent taxes are the most common approach used to control pollutants in the United States
a. True b. False Indicate whether the statement is true or false
When generic drugs enter the market after the patent for a brand name drug expires, the price of the brand name drug often increases. This is usually due to
A) the demand curve for the brand name drug shifting in but becoming more inelastic. B) the demand curve for the brand name drug not shifting, but the marginal cost of producing the good increases. C) the demand curve for the brand name drug shifting in but becoming more elastic. D) the demand curve for the brand name drug not shifting, but loyal customers are willing to pay a higher price for the brand name drug.