Which of the following has been a significant factor in DVDs replacing video cassettes (VCs) in the retail home video market?
A) DVDs are now less than one-half the price of VCs.
B) A scarcity of production capacity has curtailed the manufacture of VCs.
C) Most consumers perceive DVD sound and video reproduction to be of higher quality.
D) The price of DVD players has increased dramatically.
Answer: C) Most consumers perceive DVD sound and video reproduction to be of higher quality.
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Refer to Table 2-7. Which of the following statements is true?
A) Minnie has an absolute advantage in making umbrellas and Mickey in making hats. B) Minnie has an absolute advantage in making both products. C) Minnie has an absolute advantage in making hats and Mickey in making umbrellas. D) Mickey has an absolute advantage in making both products.
To reassure investors who were unwilling to buy mortgages in the secondary market, the U.S. Congress used two government sponsored enterprises, Fannie Mae and Freddie Mac, to stand between investors and banks that grant mortgages
Fannie Mae and Freddie Mac A) sell bonds to investors and use the funds to purchase mortgages from banks. B) sell bonds to banks and use the funds to purchase mortgages from investors. C) sell mortgages to banks and use the funds to purchase bonds from investors. D) sell mortgages to investors and use the funds to purchase bonds from banks.
Initially, demand-pull inflation will
A) increase both the price level and increase real GDP. B) shift the aggregate supply curve rightward. C) decrease potential GDP. D) increase the price level and decrease real GDP. E) increase the price level and not change real GDP.
Which of the following shifts the ATC curve upward at the XYZ Co?
A) an increase in the hourly wage that XYZ pays its workers B) a decrease in the hourly wage that XYZ pays its workers C) an increase in the fixed amount of liability insurance premiums that XYZ pays for its business D) Both answers A and C are correct.