New reports indicate that eating turnips helps people remain healthy. The news shifts the demand curve for turnips rightward. In response, new farms enter the turnip industry
During the period in which the new farms are entering, the price of a turnip ________ and the economic profit of each existing firm ________. A) rises; rises
B) rises; falls
C) falls; rises
D) falls; falls
D
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Refer to the production possibility graph above. Assume that the economy is in equilibrium at point e. If the labor supply increases due to immigration, the new equilibrium is most likely to be
A) point h. B) point f. C) point d. D) point e. E) point b.
Which of the following is not a reason why residents of other countries desire to acquire dollars?
a. foreigners need dollars to purchase U.S. goods and services b. dollars can be used as a safe way of storing value when the foreigner's own currency is unstable c. dollars are accepted as an international medium of exchange d. dollars can be used for cash gifts from foreigners to U.S. friends and relatives e. dollars are the only currency accepted in international transactions
Real gross domestic product (GDP) shows: a. total spending on intermediate goods and services. b. constant dollar GDP. c. net domestic product
d. nominal GDP adjusted for taxes. e. domestic income.
If firms increase their investment spending by $10 million, then the economy's equilibrium output rises by exactly $10 million
a. True b. False Indicate whether the statement is true or false