Suppose recent and widely circulated medical article reports new benefits of cycling exercise. Simultaneously, the price of the parts needed to make bikes falls. If the change in supply is greater than the change in demand, the price will _________ and the quantity will _________
a. Rise, rise
b. Rise, fall
c. Fall, rise
d. Fall, fall
c
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Assume that you have heard news that a local radio station is hosting a luncheon at your school by offering hot dogs, chips and cola at no expense to the student body. Why would economists say that this lunch is not truly free?
What will be an ideal response?
Refer to the table above. If countries were to trade along the lines of comparative advantage
A) B would export Y to A. B) A would import X from A. C) neither country would want to trade. D) More information is needed to determine the pattern.
In the country of Kwaki, people produce canoes, fish for salmon, and grow corn. In one year they produced 5000 canoes using labor and natural materials only, but sold only 4000, as the economy entered a recession
The cost of producing each canoe was $1000, but the ones that sold were priced at $1250. They fished $30 million worth of salmon. They used $3 million of the salmon as fertilizer for corn. They grew and ate $55 million of corn. What was Kwaki's GDP for the year?
If View Your World, a high-end window manufacturer, has contracted with local carpenters to install their windows in residential homes, this is an example of ________.
A) a market transaction B) forward integration C) outsourcing D) backward integration