Increases in the interest rate reduce the multiplier effect of an increase in government purchases
a. True
b. False
A
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In perfect competition, innovation is a means for a firm to
a. exit the market b. establish brand loyalty c. shift the ATC and MC curves upward d. generate short-run economic profit e. shift the market supply to the left
The concept of relative poverty
A. leads to the concept of inequality. B. replaces the need for concepts of absolute poverty. C. is measured relative to the poverty line. D. is only relevant in low income countries.
The individual supplies of apples from three apple orchards are 460, 580, and 700 apples respectively, when the equilibrium price of an apple is $0.75 . Identify the correct statement from the following
a. The market supply at $0.75 is 1,540 apples. b. If the price rises above $0.75, the market supply will be lower than 1,740 apples. c. If the price rises above $0.75, there will be an excess demand for apples in the market. d. The market demand at $0.75 is 1,740 apples.
The concepts of comparative advantage, specialization, and trade form a compelling argument in favor of:
A. self-sufficiency. B. protectionism. C. only exporting goods and not importing goods. D. free trade.