Which of the following would most likely cause consumption to increase?
A. the stock market crashes
B. a price ceiling is placed on the interest rate that credit card companies can charge
C. inflationary expectations rise
D. the market for consumer durables becomes saturated
C. inflationary expectations rise
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In the above figure, saving will equal zero when real disposable income equals
A) 500. B) 600. C) 60. D) 0.
What is the dumping argument for protection from international trade?
A) Domestic firms must be protected until they gain a comparative advantage. B) Any firm necessary in wartime must be protected. C) Foreign producers selling below cost to drive domestic firms bankrupt must be stopped. D) Domestic jobs must be protected from competition from low-paid foreign workers. E) Foreigners selling products in the economy limit the nation's diversity and stability.
Refer to the Article Summary. A merger between two competitors such as Staples and Office Depot may ultimately be approved by the Department of Justice and the FTC if the two companies can substantiate ________ as a result of the merger
A) increases in economic efficiency B) an increase in the HHI to over 1,800 C) increases in revenue for the merged company D) decreases in marginal revenue for the merged company
Refer to the above table. What is the absolute price elasticity of demand if a price falls from $7 to $6.50?
A) 0.85
B) 1.08
C) 1.17
D) 0.92