If this is an open economy, quantity supplied of cars by the domestic producers will be ________. 
A. 20,000
B. 80,000
C. 60,000
D. 40,000
Answer: A
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Jack F. Altrades's decision whether to purchase a good from a firm or hire resources directly in the market will
a. depend, in part, on his production skill but not on his contract negotiation skill b. depend, in part, on the opportunity cost of his time but not on his skill c. not depend on the cost of identifying, measuring, and pricing inputs d. not depend on the cost of negotiating contracts e. depend, in part, on both his skill and the opportunity cost of his time
If the economy unexpectedly went from inflation to deflation,
a. both debtors and creditors would have reduced real wealth. b. both debtors and creditors would have increased real wealth. c. debtors would gain at the expense of creditors. d. creditors would gain at the expense of debtors.
Prices provide signals about resource allocation to all individuals in a ________ system
A) market B) command and control C) central planning D) political
Business cycles affect long run growth because
a) uncertainty caused by business cycles deters investment b) installation costs for new plant and equipment are lower during recessions than during periods of expansion c) human capital depreciates during recessions d) the competition to survive a recession provides incentives for firms to reorganize for greater efficiency e) all of the above