The U.S. and Canada have significant trade with each other. Which of the following is true?
A. Canadian prices decrease ? Canadian exports decrease ? U.S. prices increase.
B. Canadian prices decrease ? Canadian exports decrease ? U.S. prices decrease.
C. Canadian prices increase ? Canadian exports decrease ? U.S. prices increase.
D. Canadian prices increase ? Canadian exports increase ? U.S. prices decrease.
Answer: C
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The population theory of Thomas Malthus
(a) would have predicted the changes in per output in this country in the 19th century and up to 1910. (b) would lead you to expect a powerful surge in physical output as the immigration poured in. (c) would not have predicted the positive trend increase in per capita output and income in 1860–1910. (d) does not apply to any of the above.
Suppose you are the manager of Natural Oils, a firm that specializes in healthy skin oils. To make your oils, you purchase avocado pits from guacamole manufacturers. If the demand for guacamole decreases, this will cause the production of avocado pits to ________ and the price of avocado pits to ________.
A) decrease; fall B) increase; fall C) decrease; rise D) increase; rise
Goods X and Y are complementary goods. An increase in the price of good X has occurred. In the market for good Y this will lead to
A) an increase in price and a decrease in quantity. B) an increase in price and an increase in quantity. C) a decrease in price and a decrease in quantity. D) a decrease in price and an increase in quantity.
The monopolist faces a:
A. perfectly elastic demand curve. B. downward sloping demand curve. C. perfectly inelastic demand curve. D. perfectly elastic supply curve.