Demand for Snickers bars will decrease if:
A. the price of Snickers bars decreases.
B. a news story claiming 95% of all geniuses eat at least one Snickers bar a day is released.
C. the price of Milky Way bars (a substitute) decreases.
D. the price of Milky Way bars (a substitute) increases.
C. the price of Milky Way bars (a substitute) decreases.
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Which of the following generally becomes positive when the value of U.S. exports exceeds the value of U.S. imports?
A) capital and financial account B) the balance of payments account C) current account D) the official settlements account E) the exchange rate
If a country's imports are very important in determining the volume of exports from its trading partners, then:
a. the simple spending multiplier understates the true value of the multiplier. b. the spending multiplier will be equal to 1/marginal propensity to import. c. the simple spending multiplier is an accurate measure of the multiplier effect. d. the simple spending multiplier will be equal to 1/MPC e. the spending multiplier will be equal to 1/marginal propensity to save.
Why does a firm in a competitive industry charge the market price?
a. If a firm charges less than the market price, it loses potential revenue. b. If a firm charges more than the market price, it loses all its market power. c. The firm can only sell limited number of units of output, so it wants to sell at the market price in order to lower its costs. d. All of the above are correct.
The reason that some people make more money than others is explained mainly by
A. training and education. B. intelligence. C. inborn skills or physical attributes. D. all of the choices/statements are true.