Which of the following is the term for an innovative new product or production technology that disrupts the status quo in a market, leading the innovators to earn more income and profits and the other firms to either lose income and profits, or come up with their own innovations?
a. disruptive technological change.
b. disruptive market change.
c. disruptive trade change.
d. disruptive transfer change.
b. disruptive market change.
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Which of the following is an example of a macroeconomic aggregate?
A) Total fixed cost faced by a firm B) Income earned by a household C) Profit earned by an entrepreneur D) The annual inflation rate
Which of the following tools does the Fed use to pursue its objectives?
A) It influences short-run and long-run interest rates. B) It provides loans to new firms and businesses at extremely low rates of interest. C) It determines the efficient level of government spending. D) It influences market prices through price ceilings and price floors.
Refer to Figure 18.1. Canada has a comparative advantage in the production of
A) bicycles. B) hang gliders. C) both bicycles and hang gliders. D) neither bicycles nor hang gliders.
Which of the following about trade is true?
a. Trade does not produce anything new; therefore, it cannot create value. b. The value of a good is determined by the cost of the material resources required for its production. c. The value of a good generally depends on who uses it and circumstances such as when and where it is used. d. All of the above are true.