In the long run, a year-long drought that destroys most of the summer's wheat crops causes permanently:
A. higher prices.
B. lower prices.
C. lower output.
D. None of these is true.
Answer: D
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Providing which of the following in your proposal will help build your credibility with the audience
A. descriptions of similar projects you have completed B. a list of the deliverables you are agreeing to provide C. an explanation of when and how the work will be completed D. a delineation of your costs
Under a flexible exchange rate system, one factor that does NOT directly affect rates of exchange is
A) changes in the inflation rate in each country. B) changes in productivity in each country. C) changes in gold holdings in each country. D) changes in economic stability in each country.
If a firm in a perfectly competitive industry lowers its price below the market price, its
A. sales will drop to zero. B. profit will decrease. C. total revenue will increase. D. demand curve will become downward sloping.
Which of the following is a key difference between the economic activities of government and those of private firms?
A)Private economic activities create externalities; government activities do not. B) Government has the legal right to force people to do things; private firms do not. C) Private firms face the constraint of scarcity; government does not. D) Government focuses primarily on equity; private firms focus only on efficiency.