Refer to Table 5.1. Andrea should specialize in the production of
A) bracelets.
B) tiaras.
C) both products.
D) neither product.
A
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A country will export a good if it
A) can sell the good to a foreigner at a lower price than the no-trade price. B) can sell the good to a foreigner at a higher price than the no-trade price. C) has a high opportunity cost of production. D) is impossible to import the good. E) can dump the good on the world market.
Once a firm has selected a price for its product, quantity is decided by consumers and their demand curves.
Answer the following statement true (T) or false (F)
Which of the following is not an example of a demand shock?
a. A reduction in government spending b. An increase in income tax rates c. A change in oil prices. d. A money supply increase. e. An increase in government spending.
In the above graph, tax revenues vary:
A. inversely with the level of GDP. B. directly with the level of government spending. C. directly with the level of GDP. D. inversely with the level of government spending.