Explain how globalization has caused some goods to be cheaper.

What will be an ideal response?

Globalization has caused the production of certain items to shift to lower-cost producers in countries like China and India. Most electronic devices provide a good example. Because Chinese and Indian factories have a much lower marginal cost, they can produce goods for less, resulting in lower retail prices for consumers.

Economics

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The game between music stores in the figure shows us that:

This figure displays the choices and payoffs (company profits) of two music shops-MiiTunes and The Rock Shop. MiiTunes is an established business in the area deciding whether to charge its usual high prices or to charge very low prices, in the hopes that a new business will not be able to make a profit at such low prices. The Rock Shop is trying to decide whether or not it should enter the market and compete with MiiTunes.

A. only The Rock Shop has a dominant strategy, and so the outcome cannot be predicted.
B. only MiiTunes has a dominant strategy, and so the outcome cannot be predicted.
C. neither store has a dominant strategy, and so the outcome cannot be predicted.
D. None of these statements is true.

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Economics

Refer to Figure 6-25. The equilibrium price in the market before the tax is imposed is.

a. $8.
b. $6.
c. $5.
d. $3..

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Economics

Monetary regimes

A. allow the greatest policy flexibility. B. follow the Taylor rule. C. involve feedback rules. D. are created to undermine expectations.

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Economics

Refer to the information provided in Figure 2.5 below to answer the question(s) that follow. Figure 2.5Refer to Figure 2.5. The best point for society would be

A. either Point B or Point C, as the total amount being produced at either of these points is approximately the same. B. at any of the labeled points, as all of the points represent an efficient allocation of resources. C. Point C, as at this point there are approximately equal amounts of LCD and OLED televisions being produced. D. indeterminate from this information, as we don't have any information about the society's desires.

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Economics