If smartwatches are considered substitutes for smartphones, the increase in the price of smartwatches would, all else equal,
A) increase the demand for smartphones.
B) decrease the demand for smartphones.
C) decrease the quantity of smartphones demanded.
D) increase the quantity of smartphones demanded.
A
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Which prices are used to measure goods and services in calculating the nominal GDP?
A) average prices B) past years prices C) current prices D) projected prices
A large open economy reduces its investment demand. This causes the world real interest rate to ________ and the country's current account balance to ________
A) rise; fall B) rise; rise C) fall; rise D) fall; fall
If Terrell can produce more bagels in one day than Zori can produce in one day, then
a. Terrell has a comparative advantage in the production of bagels. b. Zori has a comparative advantage in the production of bagels. c. Terrell has an absolute advantage in the production of bagels. d. Terrell should produce bagels and Zori should spend her time on a different activity.
The law of supply states that, other things equal, when the price of a good
a. falls, the supply of the good rises. b. rises, the quantity supplied of the good rises. c. rises, the supply of the good falls. d. falls, the quantity supplied of the good rises.