If a nation imports a good that can be domestically produced, what happens to the quantity consumed of the good and why?
A) The quantity consumed increases because the market price increases.
B) The quantity consumed increases because the market price decreases.
C) The quantity consumed remains constant because the price is unchanged.
D) The quantity consumed decreases because the market price increases.
E) The quantity consumed decreases because the market price decreases.
B
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Indicate whether the statement is true or false
To determine the total change in deposits as a result of an injection of reserves, we must
a. sum the number of loans a bank has made b. multiply the injection of reserves by 10 c. multiply the number of loans by the expenditure multiplier d. sum the reserves of each bank e. multiply the injection of reserves by the demand deposit multiplier
What is an opportunity cost?
What will be an ideal response?
Fixed costs are best defined as
A. costs that will not vary with the firm's output level over some period of time. B. costs that are paid on a yearly basis rather than a weekly or monthly basis. C. costs of inputs that cannot be moved, such as real estate. D. costs that will last as long as the firm exists.