If the price of a good rises, then the equilibrium consumption of that good:
A. decreases if it is a normal good.
B. increases if it is an inferior good.
C. remains the same.
D. None of the statements is correct.
Answer: A
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According to the graph shown, if this economy were to open to trade, surplus would do all of the following except:
This graph demonstrates the domestic demand and supply for a good, as well as the world price for that good.
A. increase overall.
B. decrease for the producer.
C. transfer from producer to consumer.
D. create deadweight loss of CEFG.
From an economic standpoint, government intervention may be justified
A. When the private sector is larger than public sector. B. If the market mechanism fails to achieve the optimal mix of output. C. Because the government can encourage the production of private goods. D. Because the government can increase the level of market power of private businesses.
With regard to dependence on international trade, for most of its history the United States has been _____________.
Fill in the blank(s) with the appropriate word(s).
As pizza topped with barbecue chicken became popular at specialty restaurants, Pizza Hut introduced a similar pizza. This imitation illustrates:
A. innovation. B. invention. C. creative destruction. D. diffusion.