A change in demand is said to take place when there is a
A) shift of the demand curve.
B) shift of the supply curve.
C) price change.
D) movement along the demand curve.
E) quantity change.
Ans: A) shift of the demand curve.
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A monopolistically competitive firm:
A. sells products that are perfect substitutes for its competitors' products, so must compete on the basis of location. B. will be more successful the more similar its output is to its competitors' output. C. sometimes distinguishes its output from that of its competitors by locating in a more convenient place. D. sells products that are close substitutes for its competitors' products, so will locate as far away from its competitors as possible.
Refer to Table 2-1. Assume Dina's Diner only produces sliders and hot wings. A combination of 50 sliders and 50 hot wings would appear
A) along Dina's production possibilities frontier. B) inside Dina's production possibilities frontier. C) outside Dina's production possibilities frontier. D) at the vertical intercept of Dina's production possibilities frontier.
According to the theory of purchasing power parity, whenever a country's price level is expected to fall relative to another country's price level,
A) its currency's real exchange rate relative to the other country's currency should rise. B) its currency should depreciate relative to the other country's currency. C) its currency should appreciate relative to the other country's currency. D) its nominal interest rate should rise relative to the other country's nominal interest rate.
This graph demonstrates the domestic demand and supply for a good, as well as a quota and the world price for that good.
According to the graph shown, if the economy opens itself to free trade, it will become a:
A. net importer. B. autarky. C. quota rent seeker. D. net exporter.