Refer to Scenario 3.1 below to answer the question(s) that follow.SCENARIO 3.1-Streaming movies and movies shown in theaters are substitutes. -Streaming movies and OLED TVs are complements. -OLED TVs and movies shown in theaters are normal goods. -People watch streaming movies more often in the winter than in the summer.Refer to Scenario 3.1. In response to complaints from movie theater owners, the government removes an entertainment tax on movie tickets, but there are no additional taxes levied on streaming movies. This would lead to
A. a decrease in the price of movie tickets and the price of streaming movies.
B. no change in the price of a movie ticket and a decrease in the price of streaming movies.
C. a decrease in the price of movie tickets, but no change in the price of streaming movies.
D. a decrease in the price of a movie ticket and an increase in the price of streaming movies.
Answer: A
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If the exchange rate is constant and U.S. imports increase, then in the foreign exchange market the
A) quantity of U.S. dollars supplied increases. B) supply of U.S. dollars increases. C) supply of U.S. dollars decreases. D) demand for U.S. dollars increases. E) quantity of U.S. dollars supplied decreases.
Many developing countries have a static comparative advantage in the production of one or two primary products. In what ways might specialization in these products contribute to growth and development? In what ways might this fail to contribute?
What will be an ideal response?
Profit can be earned by buying _____________ and selling ____________________
A) at one price; at the same price B) low; high C) high: low D) none of the above
How much is the output gap if short-run output is $18.0 trillion and potential output is $18.0 trillion?
What will be an ideal response?