If quantity of milk is measured on the horizontal axis and quantity of juice is measured on the vertical axis, a decrease in the price of milk will cause the budget constraint to:
A) pivot rightward along the vertical axis.
B) pivot rightward along the horizontal axis.
C) shift to the left.
D) shift to the right.
B
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A firm is defined in Economics as
a. a corporation that creates demand for the goods it produces. b. an entity that produces and sells goods that individuals demand. c. an individual or group of individuals providing public services at no charge. d. any group of individuals seeking to increase their income.
If net foreign investment in the United States is positive, how must national saving and domestic investment be related? (Assume that the capital account is zero and net transfers are zero.)
A) Domestic investment can be greater than or less than national saving. B) Domestic investment must be greater than national saving. C) Domestic investment must be less than national saving. D) Domestic investment and national saving must also be positive.
Which of the following is a correct listing of industry models ordered from most competitive to least competitive?
a. perfect competition - monopolistic competition - monopoly b. perfect competition - monopoly - monopolistic competition c. monopolistic competition - perfect competition - monopoly d. monopolistic competition - monopoly - perfect competition
In the long run, a perfectly competitive firm will react to profits by _____
a. improving the quality of its products b. increasing the price of the good it produces c. reducing its labor inputs d. increasing its level of output