The development of new technology reduces the cost of producing calculators. In addition, assume that consumers have cut back on their scheduled purchases in anticipation of further cost-saving developments. As a result, we can expect
A. a decrease in price but no predictable change in output.
B. a decrease in output but no predictable change in price.
C. an increase in output but no predictable change in price.
D. a predictable decrease in both output and price.
Answer: A
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The subprime financial crisis caused a recession because of the ________ in adverse selection and moral hazard problems and the ________ in housing prices
A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease
At a fair carnival roulette wheel, a player can either win $10, $30, or $80 . Assuming a rational player, how much should the game owner charge the player, to maximize his own profit?
a. $30 b. $40 c. $50 d. $80
Patterns of trade among nations are primarily determined by
a. cultural considerations. b. political considerations. c. comparative advantage. d. differences in the income elasticity of demand among nations.
A recessionary gap implies that
A. Aggregate demand exceeds aggregate supply at the full-employment price level. B. Inventories are being depleted faster than producers desire. C. The unemployment rate is falling. D. Aggregate demand is less than aggregate supply at the full-employment price level.