Assume the cost of certain inputs used to produce artificial Christmas trees increases and, at the same time, the economy moves into a recession, causing the incomes of consumers to decrease
Which of the following will happen to the equilibrium price and quantity of artificial Christmas trees? (Assume artificial Christmas trees are normal goods.) A) Price will increase; quantity cannot be determined.
B) Price will decrease; quantity cannot be determined.
C) Quantity will increase; price cannot be determined.
D) Quantity will decrease; price cannot be determined.
D
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The price elasticity of demand would most likely be the lowest for
A) a McDonald's hamburger. B) salt. C) a Toyota sport utility vehicle. D) Shell gasoline.
Refer to the table below. Suppose all firms in this industry have identical costs to this firm and are producing 15 units of output. One can predict that:QuantityTotal RevenueExplicit CostsImplicit Costs1050365157563620100937251251258301501619
A. old firms will exit the industry. B. price must rise. C. new firms will enter the industry. D. firms will attempt to lower their implicit costs.
Which of the following has the least impact on households' saving decisions?
A) the real rate of interest B) the quantity of imports entering the country C) expected future income D) the level of disposable income
With the Bretton Woods system of international exchange rates
A. there were fixed exchange rates, and most countries were obligated to intervene to maintain the values of their currencies within 1 percent of par value. B. the value of a country's currency was determined strictly by the laws of supply and demand. C. a nation's balance of payments was eliminated. D. the value of a country's currency was determined by its stock of gold.