If a price-taker firm selling in a competitive market offers its product at a higher price than others, it will
a. increase its profits.
b. maintain its profit base if the demand for the product is inelastic.
c. be able to expand output.
d. not be able to sell any output.
D
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The above table gives the market demand and market supply schedules for soda. There are no external benefits or external costs. What is the efficient quantity of soda?
A) 1400 B) 1000 C) 600 D) It is impossible to determine the efficient quantity without more information.
Spending on the war in Afghanistan is essentially categorized as government purchases. How do increases in spending on the war in Afghanistan affect the aggregate demand curve?
A) They will shift the aggregate demand curve to the right. B) They will move the economy up along a stationary aggregate demand curve. C) They will move the economy down along a stationary aggregate demand curve. D) They will shift the aggregate demand curve to the left.
According to the text, Zambia faces decreasing living standards because
a. it is hoarding gold b. the kwacka is rising in value relative to the dollar c. it has a positive balance on its current account d. it has taken steps to reduce its international debt e. its debt service is relatively high
Human capital is an important ingredient in the economic growth of a nation.
Answer the following statement true (T) or false (F)