Suppose Country X is one of the largest exporters of coffee in the world. A recent massive cyclone has destroyed much of the coffee crop in Country X and has considerably lowered its exports. Which of the following is a likely consequence of this disaster?
A. The price of coffee in the international market will decline.
B. The size of Country X's trade triangle will increase.
C. The price of Country X's imports relative to the price of its exports will increase unambiguously.
D. Country X's terms of trade will improve.
Answer: D
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For a monopolist, marginal revenue is
a. positive when the demand effect is greater than the supply effect. b. positive when the monopoly effect is greater than the competitive effect. c. negative when the price effect is greater than the output effect. d. negative when the output effect is greater than the price effect.
Which of the following best represents the effects of a decrease in the price of tomato juice, other things being equal?
A. An upward movement along the demand curve for tomato juice. B. A downward movement along the demand curve for tomato juice. C. A rightward shift in the demand curve for tomato juice. D. A leftward shift in the demand curve for tomato juice.
Discuss the relationship between U.S. competitiveness relative to other countries and standards of living in the United States
What will be an ideal response?
Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. The economy is currently at Point A. The opportunity cost of moving from Point A to Point B is the
A. 30 LCD televisions that must be forgone to produce 60 additional OLED televisions. B. 90 LCD televisions that must be forgone to produce 20 additional OLED televisions. C. 30 LCD televisions that must be forgone to produce 20 additional OLED televisions. D. 120 LCD televisions that must be forgone to produce 40 additional OLED televisions.