Which of the following is an example of a microeconomic decision?
A) an individual deciding how to allocate the time he or she has for work and leisure
B) a small shoe factory deciding how much leather to purchase for the next quarter's production need
C) a multinational company deciding where to relocate its world headquarter
D) All of the above answers are correct.
D
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Before it became illegal, cigarette manufacturers once relied heavily on TV advertising. According to the textbook, when the government banned TV advertising, the cigarette manufacturers:
A. were made worse off because the ban significantly reduced cigarette sales. B. thought their First Amendment rights were being violated. C. supported the ban due to their concern over health effects of smoking. D. benefited because the decision about whether to advertise on TV was a prisoner's dilemma.
Which of the following is most likely to be an inferior good? a. Porsches
b. Lobster. c. Used clothing. d. An Ivy League education.
Gains of trade are possible for two countries if they have:
A) different opportunity costs. B) equal opportunity costs. C) different political systems. D) identical political systems.
Suppose that we are currently at point b in Figure 14.1. An increase in government spending will result in a:
A. shift in the AD curve from AD1 to AD2. B. shift in the AD curve from AD1 to AD0. C. movement from point b to point a. D. movement from point b to point c.