If the world price for good A is above the domestic price for good A without trade, then the price the consumer pays for good A will ________ and the price the producer receives for good A will ________ with trade.
A. increase; increase
B. decrease; increase
C. decrease; decrease
D. increase; decrease
Answer: A
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Post deregulation, airlines attempted to maintain their earlier profit levels by instituting price discrimination in such forms as advance purchase ticket restrictions and frequent-flyer mileage programs. These methods generally did not succeed in maintaining those profit levels
Indicate whether the statement is true or false
The horizontal intercept of the budget line is:
A. M/PY. B. -PX/PY. C. M/PX. D. PYY.
The money aggregate M2 includes:
A. savings deposits but not money market deposit accounts. B. M1. C. large denomination time deposits. D. stock and bond mutual fund shares.
When an input represents a larger proportion of a firm's total costs, then
A) demand for the input will tends to be less elastic. B) the input demand will not vary significantly with a change in input price. C) the usage of the input cannot be varied in the production function. D) demand for the input will tends to be more elastic.