If Texans decrease their purchases of Mexican beer, assuming all else remains constant, this will ________ of the United States
A) decrease the financial account balance
B) decrease net exports
C) increase the trade deficit
D) decrease the current account balance
D
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If Bella's Pizza, a local pizzeria, purchases canned tomatoes from a grocery store to make their pizza sauce, this is an example of ________.
A) forward integration B) backward integration C) outsourcing D) using a spot market
Assume that all firms in this industry have identical cost curves, and that the market is perfectly competitive.
If the market supply curve is given by S1, then in the long run firms will:
A. exit the market, leading the market supply curve to shift out to S2. B. enter the market, leading the market supply curve to shift out to S2. C. neither enter nor exit the market, so the market supply curve will remain at S1. D. enter the market, leading the market supply curve to shift out to S3.
If the economy in the graph shown is currently at point D, we can conclude the:
A. government may want to enact contractionary fiscal policy. B. unemployment rate is likely very low. C. economy is in an economic boom. D. All of these are likely to be true.
Always Round Tire hires Plain Truth Advertising to write copy for its newspaper advertisements. Always Round has a demand for advertising of MB = 400 ?2S where S is the number of hours that Plain Truth works. If Plain Truth has a fixed supply cost given by MC = $150 per hour, what are the number of hours that Always Round purchases from Plain Truth under the assumption of costless monitoring? How much is the contract worth to Always Round? If Always Round offers half of the surplus to Plain Truth as an incentive, how much is Plain Truth paid for the job?
What will be an ideal response?