If new firms are expected to enter an existing market, ________
A) the market price is likely to fall
B) the market demand is likely to increase
C) the market supply is likely to fall
D) the profits of all firms are likely to increase
A
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When the price of a good increases by 300%, the quantity supplied of the good increases from 200 units to 900 units. The price elasticity of supply of the good is:
A) 1.17. B) 1.5. C) 3. D) 4.5.
Refer to the above data. If the consumer has a money income of $52 and the prices of J and K are $8 and $4 respectively, the consumer will maximize her utility by purchasing:
A) 2 units of J and 7 units of K. B) 5 units of J and 5 units of K. C) 4 units of J and 5 units of K. D) 6 units of J and 3 units of K.
Answer the following statement(s) true (T) or false (F)
1. If a government collects more taxes than it spends, there is a budget deficit. 2. Firms and households create the demand for loanable funds. 3. Both the supply and the demand curves of loanable funds are negatively sloped. 4. A low saving rate makes more money available for investment. 5. Early in the twenty-first century, it was common for people to get mortgages with no down payment and minimal documentation.
As a nation's average education level increases, the nation's level of productivity
A. Decreases, and the nation's production possibilities curve shifts to the left. B. Increases, and the nation moves to a new point on the same production possibilities curve. C. Increases, and the production possibilities curve shifts to the right. D. Decreases, and the nation moves to a new point on the same production possibilities curve.