A decrease in resource prices will increase the incentive of
a. users to purchase the resource.
b. suppliers to provide more of the resource.
c. firms to find and develop substitutes for the resource.
d. consumers to look for alternatives that do not contain the resource.
A
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For national security reasons a government decides that all of its base metal industry should not be located in the same geographical region, as it presently is
The government decides to allocate production quotas to firms in different parts of the country, but does not restrict in any way the transactions between consumers and base metal producers. This scheme is A) efficient as consumers still buy from whoever they like. B) efficient as those consumers who value base metals the most can purchase them. C) likely to be inefficient as some of the industry's output is not produced by the firms with the lowest cost. D) likely to be inefficient as the scheme will require subsidies to work. E) efficient as learning by doing effects will be strongest in the firms set up in new geographical regions.
The change in consumption divided by a change in disposable income is called the:
a. consumption function. b. marginal propensity to consume. c. marginal propensity to spend. d. spending function. e. changing propensity to consume.
How do banks potentially make economic downturns more severe and how do economic downturns contribute to the increased failure of banks?
What will be an ideal response?
Price-fixing:
A. is prohibited by Section 7 of the Clayton Act. B. is a per se violation of the antitrust laws. C. may be either legal or illegal depending on whether or not it produces above-normal profits. D. is illegal under terms of the Federal Trade Commission Act.