In much of Europe, the legal age to obtain a driver's license is 18. If the legal driving age in the United States was changed to 18, how would this affect the market for new automobiles? The market for automobile insurance?
What will be an ideal response?
The demand for new automobiles would decrease, as would the demand for automobile insurance.
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In the Great Recession of 2007-2009, the stock market values shrank, causing a reverse ________.
A. interest-rate effect B. wealth effect C. real-balances effect D. expectations effect
In the monetary small open-economy model with a fixed exchange rate, an increase in the exchange rate has which impact on domestic money demand?
A) It increases it. B) It decreases it. C) It has no impact. D) It depends.
This figure displays the choices and payoffs (company profits) of two music shops-MiiTunes and The Rock Shop. MiiTunes is an established business in the area deciding whether to charge its usual high prices or to charge very low prices, in the hopes that a new business will not be able to make a profit at such low prices. The Rock Shop is trying to decide whether or not it should enter the market and compete with MiiTunes.If MiiTunes and The Rock Shop are both in the music business and faced with the choices outlined in the figure shown, we can predict the outcome will be that:
A. MiiTunes charges high prices and The Rock Shop does not enter. B. MiiTunes charges low prices and The Rock Shop enters. C. MiiTunes charges low prices and The Rock Shop does not enter. D. MiiTunes charges high prices and The Rock Shop enters.
The change in total revenues resulting from a change in output of one unit is
A. economic revenue. B. diminishing revenue. C. marginal revenue. D. average revenue.