Firms stop producing DVDs and start producing Blu-ray discs because people prefer Blu-ray discs discs to DVDs. This will
A. make the economy more stable.
B. make the distribution of outcome more equitable.
C. make the economy less stable.
D. improve efficiency.
Answer: D
You might also like to view...
Which statement is true?
A. Subsidy payments to farmers were almost completely phased out in 2007. B. The so-called new economy of the 1990s was neither new, nor very different from the economy of the previous 25 years. C. Until the time of the Great Depression, the United States was primarily an agricultural nation. D. There were no recessions during the presidency of Bill Clinton (January 1993-January 2000).
Under TANF, the time limit for receiving benefits during a lifetime is
A. 12 years. B. 13 weeks. C. 60 months. D. 5 months.
For a corporation, issuing bonds is riskier than issuing stock.
Answer the following statement true (T) or false (F)
Consider a closed economy described by AE (aggregate expenditures) = 800,000 + 0.75Y Assume that this economy is initially in equilibrium. But now the government implements a program to improve highways that will cost $1 million. This implies that equilibrium real GDP will:
a. decrease by $1 million. b. decrease by $4 million. c. increase by $1 million. d. increase by $4 million. e. decrease by $800,000.