Falling output, in the short run, could be due to:
A. an increase in short-run aggregate supply.
B. a reduction in aggregate demand.
C. an increase in long-run aggregate supply.
D. an increase in aggregate demand.
Answer: B
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Sticky prices in oligopoly markets are
A. represented by the kinked demand curve model. B. typical of cartels. C. most common for highly differentiated products. D. a result of price discrimination.
Exhibit 1A-8 Straight line relationship
Which of the following would cause a shift in the relationship shown in Exhibit 1A-8?
A. A fall in household incomes. B. A fall in the price of pizza. C. A fall in the quantity of pizza that people wish to purchase. D. A rise in the price of pizza.
If Country A is relatively abundant in labor and Country B is relatively abundant in capital, the Heckscher-Ohlin theory predicts that Country A will export relatively labor-intensive goods and Country B will export relatively capital-intensive goods.
Answer the following statement true (T) or false (F)
In which of the following ways can a corporation raise new funds for investment? I. Issuing new shares of stock II. Having existing stock resold between two owners
A) I only B) II only C) Both I and II D) Neither I nor II