Under the kinked demand curve model, a small increase in marginal cost will lead to
A) an increase in output level and a decrease in price.
B) a decrease in output level and an increase in price.
C) a decrease in output level and no change in price.
D) neither a change in output level nor a change in price.
D
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Decreases in the value of existing assets are called:
A. capital losses. B. investment. C. capital gains. D. saving.
Using the information in the above table, the value of M2 is
A) $3,600. B) $3,500. C) $5,500. D) $4,500.
Which of the following can start an inflation?
A) an increase in aggregate demand B) an increase in aggregate supply C) a decrease in aggregate supply D) Both answers A and C are correct. E) Answers A, B, and C are correct.
Which of the following is the rationale behind the infant industry argument for import restrictions?
a. Import restrictions allow new industries, which have cost disadvantages, to compete with bigger firms from abroad. b. Import restrictions prevent foreign firms from selling low-quality raw materials to new domestic industries. c. Import restrictions help protect industries whose existence, owners claim, is vital to the security of the nation. d. Import restrictions prevent foreign firms to engage in unfair practices such as dumping, or selling their products below the cost of production.