What effect would a reduction in the U.S. selling price of Japanese-made cars have on the U.S. demand for American-made cars?
A) No effect, because price changes affect quantity demanded, not demand.
B) The demand would decrease.
C) The demand would increase.
D) We cannot tell unless we know the elasticities of demand for Japanese-made and American-made cars.
E) We cannot tell unless we know what happened to the price of American-made cars.
B
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In the market for loanable funds, the demand curve:
A. represents savers. B. is downward sloping. C. reflects that more people will choose to save the higher is the interest rate. D. is upward sloping.
The counterpart to the unsold output of firms is the lack of jobs for workers willing to work
a. True b. False Indicate whether the statement is true or false
How does the long-run industry supply curve compare to the short-run industry supply curve?
a. The long-run curve is always flatter than the short-run curve. b. The long-run curve is always steeper than the short-run curve. c. The long-run curve is based on the assumption that firms can control the price they charge, whereas the short-run curve assumes that the market sets the price. d. The short-run curve is based on the assumption that firms can control the price they charge, whereas the long-run curve assumes that the market sets the price.
The most desired goods and services that are foregone in order to obtain something else are the
A. Average total cost. B. Marginal cost. C. Opportunity cost. D. Variable cost.