Which statement is false?
A. Throughout the 1980s, the Soviet Union devoted most of its capital and talent to its military establishment rather than to market reform.
B. In the late 1970s, China began reforms, which eventually transformed it to a more market-oriented economy.
C. Russia has been more successful than China in becoming a market-oriented economy.
D. None of these statements are false.
C. Russia has been more successful than China in becoming a market-oriented economy.
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Nike is a firm in monopolistic competition. If Nike is earning an economic profit from new cross-training shoe, over time the demand for these shoes
A) increases as new firms enter the market. B) decreases as new firms enter the market. C) does not change as new firms enter the market. D) decreases as firms exit the market. E) increases as firms exit the market.
Which of the following is a way in which a government could encourage spending on research and development?
a. Increase the tax rate on capital gains b. Enhance patent protection c. Decrease funding to universities d. Increase the tax on corporate profits e. Increase the budget deficit
Suppose there was a sharp reduction in stock prices and a sharp increase in the world price of crude oil. Within the framework of the AD/AS model, how would these two changes influence the U.S. economy?
a. The lower stock prices would increase SRAS, and the higher crude oil prices would reduce AD; as a result, there would be downward pressure on the general level of prices. b. The lower stock prices would reduce SRAS, and the higher crude oil prices would increase AD; as a result, there would be upward pressure on the general level of prices. c. The lower stock prices would increase AD, and the higher crude oil prices would increase SRAS; as a result, output would tend to increase. d. The lower stock prices would reduce AD, and the higher crude oil prices would reduce SRAS; as a result, output would tend to decline.
When demand is unit elastic, an increase in price will cause
A. a decrease in total revenue. B. no change in total revenue. C. a change in total revenue in either direction depending on whether the price is increasing or decreasing. D. an increase in total revenue.