Suppose a price floor on sparkling wine is proposed by the Health Minister of the country of Vinyardia. What will be the likely effect on the market for sparkling wine in Vinyardia?
A) Quantity demanded will decrease, quantity supplied will increase, and a surplus will result.
B) Quantity demanded will increase, quantity supplied will decrease, and a shortage will result.
C) Quantity demanded will increase, quantity supplied will decrease, and a surplus will result.
D) Quantity demanded will decrease, quantity supplied will increase, and a shortage will result.
A
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The process of countries becoming more open to foreign trade and investment is known as
A) autarky. B) globalization. C) protectionism. D) foreign exchange.
Managers undertake an investment only if
a. Marginal revenue is greater than zero b. Marginal costs is less than marginal revenue c. Marginal revenue is greater than marginal costs d. Investment decisions do not depend on marginal analysis
Households' expenditure on goods and services are sources of revenue for the firms
a. True b. False Indicate whether the statement is true or false
If Les can produce two pairs of pants per hour while Eva can produce one pair per hour, then it must be true that:
A. Les has a comparative advantage in producing pants. B. Les has an absolute advantage in producing pants. C. Les has both comparative and absolute advantage in producing pants. D. Eva has a comparative advantage in producing pants.