Suppose that in 2011, 4 million plasma TVs were purchased at $950 each, while in 2012, 3 million plasma TVs were purchased at $800 each. What might have caused this change?
A. The price of LCD TVs (a substitute for plasma TVs) fell.
B. The price of LCD TVs (a substitute for plasma TVs) rose.
C. Plasma TV manufacturing technology increased.
D. Plasma TV manufacturing technology decreased.
Answer: A
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Which of the following is true of the antitrust laws in the United States? They are
A) designed to make the business environment more equitable. B) designed to promote a competitive economy. C) deliberately written in a way to make clear to all what is and what is not allowed. D) deliberately written in a language to promote cooperation among businesses.
Using economic analysis to help understand world issues
a. assumes that all decision makers use detailed economic analysis b. highlights the role of choice when resources are scarce c. has unlimited application d. is not appropriate because reality is too complex for economic modeling e. typically enables one nation to gain only when another nation loses
Under current federal antipoverty programs,
a. economic equality is promoted at the least possible cost in economic efficiency. b. a family's benefits do not depend on its earnings from work. c. a family's total income (cash and in-kind benefits) may actually fall if its earnings from work rise. d. families with children are entitled to no more assistance than families without children.
If a market is contestable, then
a. long-run economic profits are minimal due to inefficiency. b. long-run economic profits are zero. c. short-run and long-run economic profits are zero. d. positive economic profits are maximized due to the efficient production spurred by the threat of entry.