While GDP includes tangible goods such as books and bug spray, it excludes intangible services such as the services provided by teachers and exterminators
a. True
b. False
Indicate whether the statement is true or false
False
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If the demand curve is a downward sloping straight line, the price elasticity of demand always
A) increases as the demand curve shifts rightward. B) increases as the demand curve shifts leftward. C) increases with movements upward along the demand curve. D) decreases with movements upward along the demand curve.
Free trade allows firms to realize economies of scale, resulting in higher costs of production
a. True b. False Indicate whether the statement is true or false
Mexico and the members of OPEC produce crude oil. Realizing that it would be in their best interests to form an agreement on production goals, a meeting is arranged and an informal, verbal agreement is reached. If both Mexico and OPEC abide by the agreement, then OPEC's profit will be $200 million and Mexico's profit will be $100 million. If both Mexico and OPEC cheat on the agreement, then OPEC's profit will be $175 million and Mexico's profit will be $80 million. If only OPEC cheats, then OPEC's profit will be $185 million, and Mexico's profit will be $60 million. If only Mexico cheats, then Mexico's profit will be $110 million, and OPEC's profit will be $150 million.This game is ________ because ________.
A. a prisoner's dilemma; not cheating is better for both B. a prisoner's dilemma; cheating is better for both C. not a prisoner's dilemma; OPEC does not have a dominant strategy D. not a prisoner's dilemma; cheating is better for both
The demand for microwaves in a certain country is given by: D = 8,000 - 30P, where P is the price of a microwave. Supply by domestic microwave producers is: S = 4,000 + 10P. If this economy opens to trade while the world price of a microwave is $50, the domestic quantity demanded will be ________ and quantity supplied will be ________.
A. 6,000; 4,000 B. 6,500; 3,000 C. 5,000; 5,000 D. 6,500; 4,500