In Figure 1 below if the economy were at Y3 then we would expect there to be:
A. a reduction in inventories.
B. an increase in inventories.
C. no change in inventories.
D. an increase in consumption spending.
B. an increase in inventories.
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According to your text, nineteenth century economist Alfred Marshall believed that technical progress is best accomplished by
a. firms of considerable size that have the resources to engage in research and development b. universities where basic research is initiated c. curtailing competition so that firms will not lose money by experimenting in research and development d. the superior inventive force of a multitude of small competitive firms e. the government subsidizing research and development
If the inflation rate turns out to be greater than was is expected to be, the clear losers are
A. businesses. B. people on incomes adjusted by a COLA. C. borrowers. D. lenders.
The United States generally has a comparative advantage in the development of technology because it has:
A. patent laws, which no other country has. B. large amounts of natural resources. C. a disproportionate share of the world's best research universities. D. the greatest need for new technology.
When the price of tea decreases 7%, quantity demanded increases 12%. The price elasticity of demand for tea is ________ and total revenue from tea sales will ________.
A. inelastic; decrease B. elastic; increase C. elastic; decrease D. inelastic; increase