How would a decrease in consumer income affect the market for lawn mowers?
a. Demand would decrease, leading to an increase in price and a reduction in quantity sold.
b. Demand would decrease, leading to a reduction in price and a reduction in quantity sold.
c. Demand would increase, leading to an increase in price and an increase in quantity sold.
d. Demand would increase, leading to a reduction in price and an increase in quantity sold.
B
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Two variables are negatively correlated if:
A. they move in the same direction. B. they move in the opposite direction. C. their movements tend to be unrelated. D. one is simply a multiple of the other.
Which would contribute most to a firm experiencing "economies of scale"?
A. Rising long-run average costs B. The law of diminishing marginal returns C. Specialization of production within a firm D. Deterioration of information and control within a firm
When a country removes trade barriers and imports appliances and exports engineering services,
a. its growth slows. b. its productivity decreases. c. it is essentially transforming engineering services into appliances. d. its economic well-being decreases while that of the country that sells appliances increases.
When anticipated inflation occurs regularly, the degree of risk associated with investments in the economy
A. decreases. B. remains stable. C. falls to zero. D. increases.