If demand for a product increases, ceteris paribus, the equilibrium:
A. price increases.
B. price decreases.
C. price remains unchanged.
D. quantity decreases.
Answer: A
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Consumer spending accounts for nearly two-thirds percent of U.S. GDP.
Answer the following statement true (T) or false (F)
What explains the appreciation of the Japanese yen relative to the U.S. dollar from 1970 to the early 1990s?
A) High tariffs and restrictive quotas in the United States caused the value of the dollar to decline. B) Japanese productivity rose faster than U.S. productivity. C) U.S. consumers reduced their preferences for Japanese goods. D) Japanese inflation rose faster than U.S. inflation.
In order to get children to eat all the food they've served, regardless of their hunger, mothers have relied for decades on the argument that "there are starving children in Africa." Assuming the presence of hungry children on another continent does not affect the utility you derive from the food on your plate, if you choose to force down food based on this argument, you are:
A. acting rationally. B. caring more about starving children than your own well-being. C. acting irrationally. D. doing your part in the fight against world hunger.
In the short run, the ratio of the change in total cost and the change in output is greater than the ratio of the change in variable cost and the change in output
a. True b. False Indicate whether the statement is true or false