Refer to the above graph. Assume that before the Persian Gulf War, Iraq's production possibilities were represented by AB. Which line on the above graph would represent the change in Iraq's production possibilities after the war?
A. AB to AF
B. AB to BE
C. AB to EF
D. AB to AD
Answer: C
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For consumers, computers are a complement to computer software. Suppose the price of a computer falls. Simultaneously, suppose that the number of companies selling computer software decreases
How do these changes affect the price and quantity of computer software?
Firms in perfectly competitive industries are unable to control the prices of te products they sell and are unable to earn a profit in the long run. Which of the following is one reason for this?
A closed economy
a. does not trade with other economies. b. is centrally-planned. c. does not allow financial intermediation. d. All of the above are correct.
Capital goods
A. are consumed because they enhance the enjoyment consumers obtain from other goods and services. B. are a special type of consumption goods. C. are goods used to make consumer goods and services. D. refer to the expenses that a company incur for producing other types of goods.