When a major car company lowers its prices, other car makers will probably
a. maintain existing prices.
b. raise their prices.
c. go out of business.
d. lower their prices.
Ans: d. lower their prices.
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Suppose that the population is 275 million. Also assume that the labor force is 135 million and that 130 million people are employed. Calculate the unemployment rate
What will be an ideal response?
Every firm that has the ability to affect the price of the good or service it sells will
A) earn a short-run profit but break even in the long run. B) shut down in the short run. C) have a marginal revenue curve that lies below its demand curve. D) have a perfectly elastic demand curve.
Which of the following questions is of most interest for MACROECONOMISTS?
A) Why is there inflation? B) Why does the steel industry want tariffs? C) What is the appropriate stance of antitrust policy? D) Why do foreigners immigrate to the United States?
With the benefits of international trade:
a. there can be increased consumption for all. b. global production will be increased. c. world resources will be used more efficiently. d. all of these are true.