Total revenue decreases as output increases when demand is:
A. perfectly elastic.
B. price elastic.
C. price inelastic.
D. downward sloping.
Answer: C
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The simultaneous export and import of airplanes by the United States is an example of
A) increasing returns to scale. B) imperfect competition. C) intraindustry trade. D) interindustry trade.
In the IS-LM diagram, we are in "general equilibrium"
A) at all points. B) at all points on the LM curve. C) at all points on the IS curve. D) only at the intersection of the IS and LM curves.
In a perfectly competitive market ________
A) the goods purchased are assumed to be standardized products B) prices adjust quickly to equilibrium C) buyers and sellers are price takers D) all of the above E) none of the above
If the opportunity cost of production rises as more of a good is produced,
a. the terms of trade will be independent of opportunity costs b. the production possibilities curve will be a straight line c. a country will specialize in producing only those goods in which it has a comparative advantage d. a country should produce any good in which it has an absolute advantage e. a country may not specialize completely in the goods in which it has comparative advantage