Electric car manufacturers want to sell more electric cars at a higher price. Which of the following events would have this effect?
A) an increase in the price of gasoline.
B) technological advancement in the production of electric car batteries.
C) an increase in the number of manufacturers of electric cars.
D) a decrease in the price of lithium, which is used in the electric car batteries.
A
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If a nation's level of military expenditures is just below the optimal level _____
a. the nation's borders will be unprotected b. the nation will not be protecting its interests abroad c. the nation will not be projecting economic force d. it is unclear what the marginal cost will be
When the supply of credit is fixed, an increase in the price level stimulates the demand for credit, which in turn reduces consumption and investment spending. This argument is called the:
a. real balances effect. b. interest-rate effect. c. net exports effect. d. substitution effect.
Which of the following represents a problem with using per capita GDP to compare standard of living between less-developed and industrially advanced countries? a. GDP per capita does not take into account differences in population between countries
b. GDP is particularly difficult to measure in industrially advanced countries because a much larger percentage of economic activity occurs outside of officially measured market activity than in less-developed countries. c. GDP per capita will overstate the prevailing standard of living for the average person in countries with extreme levels of income inequality. d. None of the above are correct.
Refer to Table 3.2, which shows some costs and benefits of having your car repaired. Suppose you use your car to deliver pizzas. If your wage increases from $10 to $20 per hour, what happens to your best choice of hours to spend on car repairs?
A. It increases by 1 hour.
B. It decreases by 1 hour.
C. It doesn't change.
D. It decreases by 2 hours.