If the price of diamonds is expected to decrease, all else equal, then the demand for diamonds ________ and the demand for platinum ________
A) decreases; increases
B) decreases; decreases
C) increases; increases
D) increases; decreases
A
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If money is used as a mechanism to hold purchasing power for a period of time it is functioning as a
A) unit of account. B) medium of exchange. C) store of value. D) standard of value.
If an established domestic industry is in jeopardy of being displaced by lower-priced imports, there could be a rationale for
a. permanent import restrictions to prevent the decline of the domestic industry b. temporary import restrictions to allow the orderly adjustment of the domestic industry c. permanent import restrictions based on the infant industry argument d. temporary import restrictions based on the infant industry argument e. temporary import restrictions that will be replaced by permanent tax breaks for the domestic industry
Which of the following best explains why the monopolist's marginal revenue is less than the selling price?
A. To sell more units, the monopolist must reduce price on all units sold. B. As the monopolist expands output, the average total cost will decline. C. The monopolist charges each consumer the highest possible price. D. When a firm has a monopoly, consumers have no choice other than to pay the price set by the monopolist.
If a $10 trillion economy is growing at a real rate of 2.5 percent a year, what must this economy do to maintain a constant debt-to-GDP ratio?
A. Have increasingly smaller deficits B. Maintain a balanced budget C. Run increasingly larger surpluses D. Have increasingly larger deficits