If the price of a good in a closed economy is greater than the world price, then if the country opens its markets to world trade the country will be a ________ of that good.
A. net exporter
B. producer
C. net importer
D. importer and exporter
Answer: C
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Use the following graph for a competitive market to answer the question below.
A black market where the price is $2.00 could result from a price
A. ceiling set at $2.50. B. floor set at $2.00. C. floor set at $1.50. D. ceiling set at $1.50.
The minimum level of net investment necessary to maintain the stock of capital depends on
A) the rate of interest and the size of the capital stock. B) the rate of depreciation and the size of the capital stock. C) the corporate profits tax and the interest rate. D) business confidence and the corporate profits tax.
"I'm tired of eating muffins for breakfast. Today, I'm trying a bagel." These statements most clearly reflect the:
a. law of increasing returns to scale. b. second law of demand. c. law of diminishing marginal utility. d. law of comparative advantage.
If a firm increases output and its average total cost rises, then the firm is experiencing economies of scale
a. True b. False Indicate whether the statement is true or false