Which of the following is an example of the law of demand?
A) A decrease in the price of milk is followed by an increase in milk purchases.
B) A decrease in the price of milk is followed by a decrease in milk purchases.
C) An increase in the price of milk has no effect on the amount of milk purchased.
D) The amount of milk purchased increases when the price is constant.
A
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The slope of an isoquant is equal to the ratio of the price of the input on the horizontal axis divided by the price of the input on the vertical axis, multiplied by -1
Indicate whether the statement is true or false
Macroeconomics typically focuses upon:
a. the performance of special labor markets. b. the nature of supply and demand caused by government. c. the last ten years of a firm's performance. d. the performance of the national economy and how the national economy interacts with other economies.
In the long run, profits will equal zero in a competitive market because of
A) constant returns to scale. B) identical products being produced by all firms. C) the availability of information. D) free entry and exit.
Explain the major causes of the persistent trade deficits in the United States in the past decade.
What will be an ideal response?