How will a decrease in price affect a firm's revenues?
A) It depends on the price elasticity of demand.
B) Revenues will stay the same.
C) Revenues will decrease.
D) Revenues will increase.
A
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If the demand increases in a perfectly competitive market, firms will likely:
A. experience a loss due to increased competition. B. set prices artificially higher permanently. C. enter the market in hopes of capturing some profits. D. have to engage in more advertising in order to further stimulate the increase in demand.
Balance of payments refers to the balance between the imports and exports of goods and services during the same time period
a. True b. False Indicate whether the statement is true or false
The benefits to a country from dollarization include each of the following, except:
A. a lower risk premium since inflationary finance is no longer a possibility. B. no risk of an exchange rate crisis. C. greater and faster integration into world markets, increasing trade and investment. D. increased revenue from seignorage.
Two explanations for increasing wage inequality are ________ and ________.
A. increased labor supply; a slowdown in productivity growth B. technological progress; a modernized capital stock C. increased worker mobility; transition aid D. globalization; skill-biased technological change