If the price level rises, then
a. the interest rate falls and spending on goods and services falls.
b. the interest rate falls and spending on goods and services rises.
c. the interest rate rises and spending on goods and services falls.
d. the interest rate rises and spending on goods and services rises.
c
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The above table has the total revenue and total cost schedule for Omar, a perfectly competitive grower of rutabagas. When Omar maximizes his profit, Omar's profit equals
A) $80. B) $11. C) $30. D) $16. E) $105.
Which of the following programs is most clearly advantageous to those with lower levels of income?
a. farm subsidy programs b. the Social Security retirement program c. the Earned Income Tax Credit d. credit subsidies provided by the Import-Export bank to business firms that sell goods abroad
A nation can gain from international trade when
a. its relative production costs are the same as those of other countries. b. it exports goods for which it is a low-opportunity cost producer while importing goods that it could produce only at a high opportunity cost. c. it imports goods for which it is a low-opportunity cost producer and exports goods for which it is a high opportunity cost producer. d. it has a trade deficit.
A good that replaces another demanded good
a. elasticity of demand b. substitution effect c. law of demand d. complement e. substitute