Other things equal, when Europeans want to buy more grains from the United States:
a. U.S. imports will increase.
b. European exports will increase at every level of domestic income.
c. U.S. exports will increase at every level of domestic income.
d. the U.S. balance of payments will show a deficit.
e. U.S. consumption spending will fall.
Ans: c. U.S. exports will increase at every level of domestic income.
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Which of these is true of the expected price level in a labor market? a. It is the equilibrium price level in the short run
b. It determines the actual price level in the short run. c. It determines the actual price level in the long run. d. It allows firms and resource owners to make long-term wage agreements. e. The difference between the expected and actual price levels is equal to the actual inflation rate.
In the short run,
a. economic profit is always zero b. economic loss is always zero c. some inputs are fixed d. the number of firms in an industry can vary e. technology is indeterminate
An "increase in the quantity demanded" means that
A) the demand curve has shifted to the right. B) the supply curve has shifted to the left. C) price has declined and consumers therefore want to purchase more of the good. D) given supply, the price of the good can be expected to rise.
As a result of a shortage,
A. Consumers increase demand for the product. B. Producers increase output and raise price. C. Government purchases decrease. D. Producers reduce supply.