If advertising makes demand of a product less elastic, it makes sense for a firm to
a. Decrease the price of the product
b. Increase the price of the product
c. Leave the price unchanged
d. None of the above
b
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Which of the following is true?
i. When the world price of a good is lower than the price that balances domestic supply and demand, a country gains from exporting the good. ii. Compared to a no-trade situation, imports make consumers better off. iii. Quotas raise the domestic price of imported goods. A) Only i B) Only ii C) Only iii D) i and ii E) ii and iii
“Common stock” is the type only sold to small investors.
Answer the following statement true (T) or false (F)
The definition of gross domestic product is
A. the total value of all sales in the economy. B. the total value of production in the domestic economy plus the production of domestic firms in foreign countries. C. the total value of all sales of final and intermediate goods in the domestic economy. D. the total of the money values of all final goods and services produced in the domestic economy within a specific time period.
Identify which of the following is not one of the five core principles of money and banking.
A. Stability creates risk B. Risk requires compensation C. Information is the basis for decisions D. Time has value