A company is selling wacky waving inflatable arm guys for very low prices, why is this?
a. there is a shortage
b. there is a surplus
c. the company cannot meet consumer demand
d. equilibrium price has been reached
Ans: b. there is a surplus
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Classify the following as positive economics statements or normative economics statements
a) An increase in an individual's income increases consumption, but by an amount less than the increase in income. b) The government should undertake the responsibility of providing healthcare to all its citizens. c) A trade deficit can be advantageous to an economy. d) An increase in net exports has a positive effect on a country's national income. e) The gross domestic product of India is increasing at 5% annually.
When households have very low savings ________
A) investment decreases B) they are less able to cope with severe economic downturns C) bankruptcies increase D) all of the above E) none of the above
In the case where interest rates are higher in Canada, which of the following is an example of a "carry trade"
a. Increase borrowing in the US, convert to Canadian dollars and invest in Canada b. Increase borrowing in the US and invest in the US c. Increase borrowing in Canada, convert to dollars and invest in the US d. Increase borrowing in Canada and invest in Canada
Accounting profit can be calculated as
A) total revenue - explicit costs. B) total revenue - implicit costs. C) total revenue - explicit costs - implicit costs. D) total revenue - fixed costs.