Price bubble occurs when
A) price of an asset soars far above "fundamentals" like corporate earning or household income.
B) people can no longer afford to purchase an asset.
C) economy enters recessionary period.
D) economy experiences prolonged and slow recovery.
A
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What is the consequence of a positive externality in a market? What is the consequence of a negative externality? Why those consequences occur?
What will be an ideal response?
Total physical product is maximized if marginal physical product is zero
a. True b. False Indicate whether the statement is true or false
A cold spell in Florida extensively reduced the orange crop, and as a result, California oranges commanded a higher price. Which of the following statements best explains the situation?
a. The supply of Florida oranges fell, causing the supply of California oranges to increase as well as their price. b. The supply of Florida oranges fell, causing the supply of California oranges to decrease and their price to increase. c. The supply of Florida oranges fell, causing their price to increase and the demand for California oranges to increase. d. The demand for Florida oranges was reduced by the freeze, causing an increase in the price of California oranges and a greater demand for them.
In the language of international trade, "dumping" is the act of
A. producing goods without consideration of their environmental consequences. B. selling goods cheaper than the competition. C. selling goods below cost so as to drive competitors out of business. D. selling goods of substandard quality.