If the price elasticity of demand for U.S. automobiles is higher in Europe than it is in the United States, and transport costs are zero, a price-discriminating monopolist would charge
A) the same price for autos in the United States as in Europe.
B) a lower price for autos in the United States than in Europe.
C) a higher price for autos in the United States than in Europe.
D) a less profitable price for autos in the United States than in Europe.
C
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If a "liberal" wanted to increase aggregate demand, which of the following would she tend to favor?
a. An increase in government spending, because it will increase the size of the public sector. b. A decrease in transfer payments, because it keeps the public sector small. c. An increase in transfer payments, because it has a larger multiplier than tax changes. d. A decrease in taxes, because it makes the public sector smaller.
If a firm produces nothing, it still incurs its fixed costs
a. True b. False Indicate whether the statement is true or false
Use supply and demand analysis to explain what is most likely to happen to price and quantity in a competitive market for a crop such as lettuce, tomatoes, or oranges, when extreme weather destroys a large portion of the crop
Please provide the best answer for the statement.
Following the financial collapse in late 2008, the deficit increased, in part because of the
A. weakened state of the economy caused increased spending on unemployment compensation. B. high short-term interest rates and restrictive monetary policy. C. massive expansion of foreign aid to Central American democracies. D. U.S. return to the gold standard.