If the price of a product increases, then
A) the budget line rotates and the optimal quantity demanded, which corresponds to the higher price, decreases.
B) the budget line rotates and the optimal quantity demanded, which corresponds to the higher price, increases.
C) the budget line shifts outward and the optimal quantity demanded, which corresponds to the higher price, decreases.
D) the budget line shifts inward and the optimal quantity demanded, which corresponds to the higher price, increases.
Answer: A
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Suppose that the country of Pacifica sold its cars in Atlantica for less than it costs to produce the cars. Pacifica could be accused of
A) avoiding import quotas. B) increasing its gains from trade. C) dumping. D) engaging in learning-by-doing.
If a monopsonist offers a wage of $6, he finds that 1,200 people are willing to work for him. This means that the:
a. marginal factor cost is $6. b. marginal factor cost is $200. c. total wage cost is $1,200. d. total wage cost is $7,200. e. $6 wage is too high.
"Letting the data speak" in economics refers to:
A. collecting and analyzing data with econometric tools. B. using only deductive reasoning. C. using a layperson's terms in publications to explain your findings. D. focusing only on the heuristic model.
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A. the popularity of cranberry drinks B. the cost of fertilizers for cranberry production C. the number of sellers in the market D. development of a new pest control for cranberries