Which of the following is most likely to intensify a cyclical downturn?
a. a war coupled with a major improvement in communications technology
b. substantially higher interest rates coupled with an increase in marginal propensity tosave
c. the invention of the silicon chip coupled with the invention of a new energy source
d. increase in capital stock coupled with the invention of high-definition television
e. a war coupled with a severe drought
B
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The above figure shows the relationship between the price of a slice of pizza and how many slices of pizza Ricardo buys in a week. Between points A and B, the slope of the line equals
A) -5. B) -4. C) -3. D) -1. E) -2
The above figure shows the U.S. market for chocolate. With international trade, the gain in total surplus is equal to
A) area B. B) area A + area B + area C + area D. C) area B + area C + area D + area E. D) area C + area D. E) area B + area C + area D.
If the production technology in a Robinson Crusoe economy has increasing returns to scale, there is not competitive equilibrium.
Answer the following statement true (T) or false (F)
The sales of shoes that include shoelaces is a tie-in sale that most likely
A) greatly increases the shoe producer's profit. B) increases transactions costs. C) increases efficiency. D) None of the above.