How much is savings when disposable income is $5 billion?
-$3 billion
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Suppose that there is only one small clothing store in the remote village of Green Acres, and until recently the townspeople bought their shirts there. As more people in Green Acres become connected to the Internet, the price elasticity of demand for shirts at the Green Acres store will:
A. increase because the Internet offers more substitutes. B. remain the same, but the quantity demanded will decrease as more people shop online. C. decrease because the Internet offers more substitutes. D. remain the same, but the demand will decrease as more people shop online.
Other things constant, when household "time preferences" ________, business investment tends to ________
A) fall; fall B) fall; rise C) rise; fall D) rise; rise
Many people believe that the study of economics is focused on money and financial markets. Based on your reading of the chapter, how would you define economics?
What will be an ideal response?
If price is greater than average variable cost, then the firm
a. should cease production b. earns economic profits c. just breaks even d. makes an economic loss e. may make either an economic profit or loss