Assume the tennis ball industry, a perfectly competitive industry, is in long-run equilibrium with a market price of $5. If the demand for tennis balls increases and the industry experiences decreasing returns to scale, long-run equilibrium will be reestablished at a price
A. greater than $5.
B. equal to $5.
C. less than $5.
D. either greater than or less than $5, depending on the number of firms that enter the industry.
Answer: A
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A decrease in the price of an input will
A) increase demand for the product. B) decrease demand for the product. C) increase supply of the product. D) decrease supply of the product.
________ economies include ________
A) Advanced; France, Australia and South Korea B) Advanced; the U.S., Taiwan and Russia C) Advanced; Russia, Canada and Singapore D) Emerging; Taiwan, Russia and Singapore E) Emerging; Saudi Arabia, Poland and Taiwan
Which of the following is not an important contribution of the agricultural sector to overall development:
a. increasing national food supplies b. permitting foreign exchange earnings through imports c. allowing excess labor to flow to urban areas d. providing savings for industrial investment e. increasing the demand for manufactured goods g. All of the above are important contributions.
Refer to the information provided in Table 21.10 below to answer the question(s) that follow. Table 21.10
Refer to Table 21.10. Assume that this economy produces only two goods Good X and Good Y. If year 1 is the base year, the value for this economy's real GDP in year 2 is
A. $120. B. $122. C. $132. D. $140.