If the price of crude oil fell significantly, which of the following would be most likely to happen?
a. The price of air travel would increase.
b. The demand for large cars would increase.
c. The price of gasoline would increase.
d. The wages of workers in the automobile industry would fall.
B
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In comparison to commodity money, paper money
a. is not portable. b. has no intrinsic value. c. is not divisible. d. cannot be stored. e. All of the above are correct.
A firm operating in a perfectly competitive industry will shut down in the short run but earn losses if the market price is less than that firm's average variable cost
a. True b. False Indicate whether the statement is true or false
An economy produces only 500,000 tables valued at $100 each. Of these, 100,000 are sold to consumers, 200,000 are sold to businesses, 100,000 are sold to the government, and 50,000 are sold abroad. No tables are imported. At the end of the year, the table manufacturers hold the unsold tables in inventory. What is the value of the investment component of GDP?
A. $10 million B. $50 million C. $2 billion D. $25 million
Table 9-1 Output Consumption Investment Net Exports 1,000 800 500 100 1,500 1,200 500 100 2,000 1,600 500 100 2,500 2,000 500 100 3,000 2,400 500 100 3,500 2,800 500 100 4,000 3,200 500 100 ? In Table 9-1, at output of 4,000, inventories are
A. decreasing by 200. B. increasing by 200. C. increasing by 300. D. decreasing by 300.