Which of the following is most likely to help the residents of a nation produce more goods and services and achieve higher income levels
What will be an ideal response?
higher rate of investment
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The existence of economies of scale can create ________
A) a natural monopoly B) a government monopoly C) a legal monopoly D) a market in which many firms make identical products
Suppose the government cuts taxes. We would expect interest rates to ________ and the dollar to ________ in foreign exchange markets
A) rise; appreciate B) fall; depreciate C) rise; depreciate D) fall; appreciate
An increase in consumers' incomes will have what effect on the equilibrium in the restaurant meals market?
a. Price will increase, and quantity will increase. b. Price will decrease, and quantity will increase. c. Price will increase, and quantity will decrease. d. Price will decrease, and quantity will decrease. e. Price will increase, and quantity will stay the same.
Suppose cookie sales fall as consumers become more carbohydrate-conscious. If the cookie industry is a constant-cost, perfectly competitive industry, this decline in market demand will cause market supply to:
A. increase in the long run until the equilibrium price is again equal to minimum average total cost. B. increase in the long run, resulting in a higher equilibrium price. C. decrease in the long run until the equilibrium price is again equal to minimum average total cost. D. decrease in the long run, resulting in a lower equilibrium price.