The demand for computers has risen dramatically at the same time that the unit cost of production has decreased. As a result, we can expect
A. a decrease in price and no predictable impact on output.
B. a definite decrease in price and increase in output.
C. an increase in output with no predictable change in price.
D. no predictable changes in either price or output.
Answer: C
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The kinked demand curve model helps to explain:
a. fluctuations of prices in pure competition b. stabilities observed in prices in oligopolistic industries c. fluctuations observed in prices in oligopolistic industries d. all of the above e. none of the above
Securitization is the:
a. Process of originating, bundling, packaging, and selling mortgage-backed securities to investors. b.The process of originating loans and making sure they are secure. c. The process of unbundling, storing, and then selling mortgages securities to investors. d. The process of underwriting loans with an "originate-to-hold" strategy. e. The process of underwriting loans with an "originate-to-distribute" strategy.
Which of the following is not correct?
a. Countries that have had higher output growth per person have typically done so without higher productivity growth. b. A country's standard of living and its productivity are closely related. c. Productivity refers to output produced per hour of work. d. Increases in productivity can be used to increase output or leisure.
Given the slope of a supply curve, if a demand curve becomes more price elastic:
A. the share of a tax consumers pay becomes smaller. B. the share of a tax consumers pay becomes greater. C. consumers pay the entire amount of a tax. D. There is not sufficient information.