Changes in domestic and foreign income result in:
A) movements along the demand and supply curves of the foreign exchange market.
B) shifts in the demand and supply curves of the foreign exchange market.
C) all of the above.
D) none of the above.
B
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In the post-World War II period, considerable growth in total production took place in the United States
But at the same time, businesses were dumping their waste into the Great Lakes with minimal cost to themselves, significantly polluting the bodies of water as a result. This occurrence is an example where A) real GDP gives an overly positive view of economic welfare. B) real GDP gives an overly negative view of economic welfare. C) investment would have been a better measure of total production. D) the pollution counts as a final good.
Christine is an artist who creates custom cookie jars. Her annual revenue from selling the cookie jars is $90,000 . The annual explicit costs of the materials used to make the cookie jars are $54,000 . Christine could earn $6,000 per year preparing taxes. In calculating the economic profit of her cookie jar business, the $6,000 that Christine gives up is counted as part of her business's
a. total revenue. b. explicit costs. c. implicit costs. d. marginal costs.
When per-unit costs increase as output increases, there are economies of scale in production.
Answer the following statement true (T) or false (F)
If price rises from $2 to $3 and the quantity demanded falls from 100 to 99, price elasticity of demand would be
A. 0.03. B. 0.67. C. 1.23. D. 5.81.