Refer to the above table. If the consumer's equilibrium consists of 4 movies and 4 apple pies, then we know that
A. the price of a movie download is 6 times more than the price of an apple pie.
B. the price of a movie download is 5 times more than the price of an apple pie.
C. the price of an apple pie is 5 times more than the price of a movie download.
D. the price of an apple pie is 3 times more than the price of a movie download.
Answer: C
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An increase in the value of the U.S. dollar relative to the Japanese yen would be ________ for Japanese owners of U.S
houses who wish to sell those houses, and ________ for Japanese manufacturers operating factories in the United States that export their products back to Japan. A) good news; bad news B) good news; good news C) bad news; bad news D) bad news; good news
Public goods are not free. If we need a fighter aircraft, we are obliged to give up something else that could have been provided with the resources used to make the aircraft. The opportunity cost of providing aircraft can be represented in the
a. paradox of thrift b. aggregate expenditure curve c. marginal propensity to consume d. innovation cycle e. production possibilities curve
Market
What will be an ideal response?
Compared to ideal economic efficiency, when the production of a good generates external costs, competitive markets will result in an output that is too:
A. large and a price that is too high. B. large and a price that is too low. C. small and a price that is too high. D. small and a price that is too low.