The price of a good that prevails in a world market is called the
a. absolute price.
b. relative price.
c. comparative price.
d. world price.
d
You might also like to view...
Refer to the scenario above. A firm producing Good Y will ________
A) earn economic profits if it charges a price of 120 B) incur losses if it charges a price of $200 C) earn zero economic profits if it charges a price of $170 D) shut down production if price falls below $200
Any improvement in overall production technology that permits more output to be produced with the same level of inputs causes
A) a movement up the supply curve resulting in both a higher equilibrium price and quantity. B) a rightward shift of the supply curve so that more is offered at each price. C) no movement of the supply curve, but a fall in price and a decrease in quantity supplied. D) a leftward shift of the supply curve so that less is offered for sale at each price.
A rational decision maker takes an action if and only if
a. the average benefit of the action exceeds the average cost. b. the average cost of the action exceeds the average benefit. c. the marginal benefit of the action exceeds the marginal cost. d. the marginal cost of the action exceeds the marginal benefit.
What is the source of the supply of loanable funds?