Holding supply constant, a reduction in demand leads to
A) lower prices and higher quantity supplied.
B) lower prices and lower quantity supplied.
C) higher prices and higher quantity supplied.
D) higher prices and lower quantity supplied.
B
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The output gap is
A) the difference between target output and realized output. B) the difference between initial output and final output. C) the difference between market-clearing output and actual output. D) the difference between forecasted output and past output.
A country that has relatively large amounts of a particular resource at its disposal
a. will tend to have an absolute advantage b. will trade the resource for some good in which that country has an absolute advantage c. will tend to have a comparative advantage in goods that make heavy use of that resource d. will trade the resource for some good in which that country has a comparative advantage e. will tend to have a low exchange rate
There is no correlation between more years of schooling and increased earnings.
A. True B. False C. Uncertain
Whenever the additional revenue from the last unit of output exceeds the additional cost of that unit, a profit-maximizing firm should
A. produce more in order to increase profits. B. think about investing in another industry. C. produce less in order to increase profits. D. do nothing, the firm is making profits.