The price level in India increases from 131 to 137 while its trading partners' price levels remain constant. As a result, people will buy ________ Indian-made goods and there will be a movement ________ along India's aggregate demand curve
A) more; upward
B) more; downward
C) less; downward
D) less; upward
D
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When market failure is present,
a. democratic political decision-making can be counted on to improve the efficiency of resource allocation. b. market allocation will achieve idealized economic efficiency. c. the conditions implied by idealized efficient allocation of resources will be absent, but it does not follow that political action will improve the situation. d. democratic political decision-making will never be able to improve the efficiency of resource allocation.
The governmental expense of a farm price support tends to increase as the price of the good falls.
Answer the following statement true (T) or false (F)
Diminishing marginal returns occur in the short run.
Answer the following statement true (T) or false (F)
Under which of the following circumstances should a firm hire more labor and less capital?
a. The last unit of labor employed generated more output / total product than the last unit of capital employed. b. The last dollar spent on labor generated more output / total product than the last dollar spent on capital. c. Labor is relatively much cheaper than capital. d. None of the above represents a condition where a firm should employ more labor and less capital.