If investment is zero, the capital stock
A. continues to flow.
B. falls to zero.
C. remains constant.
D. grows steadily.
Answer: C
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The higher price of imported products due to trade barriers causes some consumers to shift their purchases to a domestically produced product that is now
A. lower in price because import competition has declined. B. higher in price because import competition has declined. C. lower in price because import competition has risen. D. higher in price because import competition has risen.
If a large hardware chain offers a ten percent discount to those currently serving in the military and veterans, this is an example of ________ and is ________.
A) price discrimination; only illegal if the practice substantially lessens competition or tends to create a monopoly B) conditional sales; always illegal per se C) price discrimination; always illegal per se D) conditional sales; only illegal if the practice substantially lessens competition or tends to create a monopoly
The change in quantity demanded derived from a change in price is
a. the movement along a demand curve b. the movement along a supply curve c. a shift in the demand curve d. a shift in the supply curve
If the economy is in recession, explain what advice you would give the President if you were a classical economist. What advice would you give if you were a Keynesian?