The average demand curve slopes downward due to all of the following EXCEPT
A) the law of increasing relative costs.
B) the laws of diminishing marginal utility.
C) the real-income effect.
D) the principle of substitution.
Answer: A
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An economy produces only 1,000,000 computers valued at $2,000 each. Of these, 200,000 are sold to consumers, 300,000 are sold to businesses, 300,000 are sold to the government, and 100,000 are sold abroad. No computers are imported. At the end of the year, the computer manufacturers hold the unsold computers in inventory. What is the value of GDP?
A. $2.0 billion B. $0.9 billion C. $1.0 billion D. $1.8 billion
The short run is a time period during which
A) some of the firm's resources are fixed. B) all of the firm's resources are fixed. C) all of the firm's resources are variable. D) the fixed cost equals zero. E) the firm cannot increase its output.
Over ninety-five percent of all new businesses that open each year in the United States employ ________ workers
A) only one or two B) fewer than 20 C) 50 or more D) over 100
Quotas that limit the quantity of imports of a foreign good provide an incentive for foreign suppliers to: I. Provide higher quality goods. II. Seek more open markets elsewhere. III. Lower prices to be more competitive. IV. Stop all trade with the country imposing the quotas. Which of the above statements are true?
a. I and II. b. I and III. c. II and IV. d. I, III, and IV. e. III only.