Consumption responds mostly directly to changes in the:
A. nominal price of a good.
B. real price of a good
C. perfect price of a good.
D. the absolute dollar price of a good.
Answer: B
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Evidence of external costs in the production of a product is present if
A) the price of the product is higher than it should be. B) the production cost increases because of an increase in the minimum wage. C) non-buyers and/or non-producers of the product experience a loss for which they are not compensated. D) buyers refuse to purchase the product. E) producers pay all of the costs of producing the good or service.
What are the three types of gains from international transactions between the residents of different countries?
What will be an ideal response?
The price elasticity of a monopolistically competitive firm's demand curve varies
A. directly with the number of competitors and the degree of product differentiation. B. directly with the number of competitors but inversely with the degree of product differentiation. C. inversely with the number of competitors and the degree of product differentiation. D. inversely with the number of competitors but directly with the degree of product differentiation.
Elimination of the corporate income tax would ________ government saving and probably ________ private business saving
A) increase, increase B) increase, decrease C) decrease, increase D) decrease, decrease