What matters most in determining the efficient distribution of production over the world is
a. absolute advantage
b. efficiency.
c. the stock of resources.
d. comparative advantage.
d
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If demand for Farmer John's maple syrup is inelastic, then when Farmer John raises the price of maple syrup, his total revenue will
A) increase. B) decrease. C) stay the same. D) probably change, but more information is needed to determine if the total revenue increases, decreases, or stays the same.
Which might be a possible reason a cable television operator want to bundle channels together in packages ("tiers")?
a. delivering many channels to the consumer is not much more costly than delivering a few. b. simplifies the consumer's choice and perhaps lowers administrative costs. c. allows the firm to extract revenue from a consumer even if it does not know exactly which channels the consumer likes the most.. d. all of the above.
In contrast to the structural deficit, the cyclical deficit reflects
A. Changes in discretionary fiscal policy. B. Fluctuations in economic activity. C. Fiscal policy decisions. D. Changes in the "full-employment" deficit.
Consider a perfectly competitive market. What do you expect to happen to the number of firms and firm profitability in the short run and long run if demand for the product falls?
What will be an ideal response?