"If China and India continue their economic expansion, the world cannot provide enough raw materials without terrible shortages worldwide." Evaluate this statement
a. True, increased demand from developing countries will swamp the existing supply of resources.
b. True, increased demand from China and India will lead to large shortages in the North America and Europe.
c. False, the shortage will be limited to China and India.
d. False, increasing scarcity will result in higher prices and the deployment of new technologies that increase the efficiency of production, and together these markets forces will help to balance demand and supply worldwide.
D
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Which of the following is not included as "net income" in the U.S. balance of payments?
a. Profits earned by U.S. companies from foreign operations and reinvested abroad. b. Profits earned by U.S. companies from foreign operations. c. Foreign dividends received by U.S. residents. d. U.S. interest paid to foreigners. e. All the above are includedas "net income" in the U.S. balance of payments.
For a country to be a price taker in the global market for some good:
A. there must be many buyers all buying a large amount from the market. B. the quantity it produces and consumes must be very small relative to the total amount of that good bought and sold worldwide. C. there must be many sellers all supplying a very significant amount to the market. D. the quantity it produces and consumes must be very large relative to the total amount of that good bought and sold worldwide.
The supply curve shows the relationship between
A. the demand and supply schedules. B. price and quantity supplied. C. income and quantity supplied. D. quantity demanded and quantity supplied.
Which of the following is an accurate statement about monopolistic competition?
a. Competing firms often conduct retaliatory moves. b. Firms often act independently. c. Markets often have few competing firms. d. Firms often significantly influence the policy of competing firms.