When a firm has many competitors selling the same good, in order to sell more of the good,
A. it must, ironically, increase prices.
B. it must advertise.
C. it must reduce the price it charges.
D. it only needs to produce more of the good.
Answer: D
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Factors of production are the
A) goods and services produced by the economy. B) productive resources used to produce goods and services. C) goods that are bought by individuals and used to provide personal enjoyment. D) goods that are bought by businesses to produce productive resources. E) productive resources used by government to increase the productivity of consumption.
According to the law of one price
A) a company can only charge one price for a product, no matter which nation the product is sold in. B) interest rates across nations should be the same when adjusted for exchange rates. C) goods that are easily tradable across nations should sell for the same price expressed in a common currency. D) the price of gold should differ between nations.
An increase in labor productivity shifts the
A) AD curve rightward. B) AD curve leftward. C) short-run aggregate supply (SRAS) curve leftward. D) SRAS curve rightward. E) none of the above
If a central bank reduced inflation by 3 percentage points and in the short run this made output fall by 3 percentage points for 3 years and the unemployment rate rise from 3 percent to 9 percent for three years, the sacrifice ratio is
a. 1. b. 2. c. 3. d. None of the above is correct.