Suppose that one can read a graph that shows information about price and quantity of some product. Relying solely on the graph, is it possible to explain the relationship between the two variables?
No. The graph does not, by itself, provide an explanation of the cause-effect relationship. For this, one needs economic theory.
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Which statement is false?
A. The poverty rate was lower in 2009 than it was in 2000. B. The poverty rate for children under 18 is higher than the poverty rate for people over 65. C. The poverty rate today is higher than it was in 2006. D. The poverty rate for Hispanics is three times that of whites.
In a properly operating, dynamic economy
What will be an ideal response?
The make-up of the Governing Council of the European Central Bank and the methods used to calculate price stability for the monetary system can potentially result in:
A. a policy for the median country rather than a policy well suited for any country. B. monetary policy that is well suited for some countries but ill-suited for others. C. small countries having undue influence on the decisions of the Council. D. all of the results listed are possible.
If Samsung sells TVs at a higher price in the United States than in Korea, and if there is no cost difference in producing or transporting the TV sets, Samsung would be practicing
A) cartel pricing. B) price discrimination. C) simple monopoly behavior. D) price differentiation.