An increase in a country's net commodity terms of trade will
A) not always guarantee positive changes in the country's economy.
B) always increase the country's economic welfare.
C) always increase the country's real income.
D) never increase the country's quantity of exports.
E) always increase the country's production of its import competing good.
A
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The accompanying graph shows the cost curves for a competitive firm. What is the lowest price at which the firm will start producing output in the short run?
A. $1.25 B. $1.05 C. $0.90 D. $0.60
If oligopolistic firms facing similar cost and demand conditions successfully collude, price and output results in this industry will be most accurately predicted by which of the following models?
A. Pure monopoly model. B. Price-leadership model of oligopoly. C. Kinked-demand curve model of oligopoly. D. Monopolistic competition model.
Monopolistic competition is a market structure in which
A) firms produce and sell products for which there are no close substitutes. B) the demand curve for a typical firm is horizontal. C) firms cannot influence the market price. D) barriers to entry are low.
If an economist observed that higher hot dog prices lead to an increase in the demand for chili, she most likely would conclude that:
A. chili and hot dogs are both normal goods. B. chili and hot dogs are both inferior goods. C. chili and hot dogs are substitutes. D. chili and hot dogs are complements.