The relative decline in goods production compared to services produced means that we're producing fewer goods than in earlier decades.
Answer the following statement true (T) or false (F)
False
Not necessarily: the actual production can go up while the relative share of production declines.
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Suppose farmers in a given market can either grow soy beans or corn on their land. In addition, suppose an increase in the demand for corn causes the price of corn to increase. All else equal, an increase in the price of corn creates an incentive for farmers to:
A. switch away from growing soy beans and into growing corn. B. switch away from growing corn and into growing soy beans. C. grow less corn, but not change their production of soy beans. D. grow more corn, but not change their production of soy beans.
The velocity of money is the:
a. rate at which the price index for consumer goods rises. b. multiple by which an increase in government expenditures will cause output to expand. c. average number of times a dollar is used to buy goods and services included in GDP. d. number of times a dollar is taken out of the country during a year.
The authors of this text argue that oligopolies are interdependent firms. What do they mean by this? Give three examples of the types of interdependence which might occur.
What will be an ideal response?
One feature of pure monopoly is that the firm is ________.
A. a producer of products with close substitutes B. a price taker C. a price maker D. one of several producers of a product