Which of the following caused pre-1984 volatility in residential construction?
A) financial regulations
B) tax cuts
C) currency volatility
D) interest rates
A
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If the price of pork rinds falls, the substitution effect due to the price change will cause
A) an increase in the quantity of pork rinds demanded. B) a decrease in the quantity of pork rinds demanded. C) an increase in the demand for pork rinds. D) an increase in the demand for corn chips, a substitute for pork rinds.
Suppose the world economy is divided into two halves. In Region A, all economies experience a decrease in desired saving, while desired saving is unchanged in Region B
If there is open trade and perfect capital mobility across the two regions, which of the following is true? A) Actual saving in Region B has increased. B) Actual investment in Region A has increased. C) Region A's imports from Region B have decreased. D) all of the above E) none of the above
A majority of federal revenue once came from tariffs
a. True b. False
You work as a forecaster for the major producer of digital cameras. You know that there is a strong positive relationship between the demand for digital cameras and the birth of a first child. A report has just been issued predicting that the birthrate is expected to decrease steadily over the next 10 years. You should recommend which of the following courses of action to the firm?
A. Suggest that the firm increase its advertising to avert a substantial decrease in demand for digital cameras. B. Suggest that decreasing investment in new capital to produce digital cameras occur only after it can be verified that the birthrate has decreased. C. Start to decrease investment now so that when the birthrate decreases and the demand for digital cameras decreases, the firm will not have excess inventories due to the decrease in demand. D. Don't change the amount of investment made, but lower the price of digital cameras in response to the expected decrease in the demand.