Refer to Figure 14.2. A movement from point c to point b could be caused by a simultaneous ________ and ________.
A. decrease in government spending; decrease in the price of oil
B. decrease in taxes; increase in the price of oil
C. increase in taxes; decrease in government spending
D. increase in government spending; increase in the money supply
Answer: A
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Which of the following situations will arise in the domestic market following the imposition of a voluntary export restraint?
A) imports increase, domestic production increases, prices increase B) imports decrease, domestic production increases, prices increase C) imports decrease, domestic production increases, prices decrease D) imports increase, domestic production decreases, prices decrease
What is a Giffen good?
What will be an ideal response?
It is possible for one person to have an absolute advantage in two tasks and a comparative advantage in only one
a. True b. False
Since it is costly for stockholders to monitor corporate managers, managers may be able to achieve personal perks and pursue other policies that conflict with profit maximization. This is an example of
a. an external benefit. b. economies of scale. c. the principal-agent problem. d. sunk costs.