Assuming compact discs and cassettes are substitute goods, a decrease in the price of cassettes will cause the demand curve for compact discs to:
a. shift to the left as consumers switch from buying discs to cassettes.
b. shift to the right as consumers switch from buying discs to cassettes.
c. shift to the left as producers increase cassette production and reduce disc production.
d. remain unchanged since discs and cassettes are sold in separate markets.
a
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Because economists understand what things change GDP, they can predict recessions with a fair amount of accuracy
a. True b. False Indicate whether the statement is true or false
Suppose both buyers and sellers of wheat expect the price of wheat to rise in the near future. What would we expect to happen to the equilibrium price and quantity in the market for wheat today?
a. The impact on both price and quantity is ambiguous. b. Price will increase; quantity is ambiguous c. Price will increase; quantity will increase d. Price will increase; quantity will decrease e. Price will decrease; quantity is ambiguous.
When the Chinese government buys U.S. government bonds, from the perspective of China, this is a(n):
A. export. B. import. C. capital outflow. D. capital inflow.
Unlimited liability is found in
A. partnerships and corporations. B. proprietorships and corporations. C. proprietorships and partnerships. D. proprietorships, partnerships, and corporations.