A new discovery makes ink jet computer printers less expensive to produce. At the same time another type of computer printer, the laser printer, also becomes less expensive. What would you expect to happen to the equilibrium price and quantity of ink jet printers?
A. Equilibrium price will rise, but the effect on quantity is uncertain.
B. Equilibrium quantity will rise, but the effect on price is uncertain.
C. Equilibrium price will fall, but the effect on quantity is uncertain.
D. The answer cannot be determined from the information given above.
Answer: C
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a. True b. False Indicate whether the statement is true or false
Which group has fared the worst in the globalization process?
A. International traders B. Skilled workers in the non-tradable sector C. Government workers D. Workers involved in the manufacture of commodities
The United States imports shoes from third world countries. This means that if the U.S. economy were closed, the domestic price of goods would be ________ the world price of shoes.
A. greater than B. close to C. less than D. equal to