U.S. goods will become relatively less expensive than goods from other countries if prices were to:
A. decrease in the United States and foreign countries at the same rate.
B. decrease in the United States only.
C. increase in the United States and foreign countries at the same rate.
D. increase in the United States only.
Answer: B
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High employment spurs economic growth because high employment
A) usually reduces inflation. B) discourages foreign imports. C) often leads to a high birth rate. D) often leads to high rates of investment.
The total revenue curve of a perfectly competitive firm
a. is horizontal b. is vertical c. has a diminishing slope as output increases d. has an increasing slope as output increases e. has a constant slope as output increases
If economists say that a 7 percent growth in the money supply will increase aggregate demand by 7 percent, they are assuming that velocity
a. will decrease. b. is constant. c. will increase. d. is unpredictable.
Which of the following is likely to happen if the government decides to impose a tariff?
A) Domestic consumers will be better off. B) The revenue earned by the government will decrease. C) Domestic producers will face higher foreign competition. D) The domestic industry will earn higher profits.