Lower interest rates are likely to
A. decrease both consumer spending and consumer saving.
B. have no effect on consumer spending or saving.
C. increase consumer spending and decrease consumer saving.
D. decrease consumer spending and increase consumer saving.
Answer: C
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US and Canada can both grow wheat and can do mining. Use the following table to look for which country has a comparative advantage in mining. (HINT: Find the cost of mining in terms of wheat in each country.) Absolute Cost in US Absolute Cost in Canada Wheat $5 C$8 Mining $10 C$12
a. Canada has a comparative advantage in mining. b. The US has a comparative advantage in mining. c. No comparative advantage in mining exists for either nation. d. We must first know the exchange rate to be able to answer this question. e. Both a and b.
Refer to the accompanying figure, which shows the market for cups of coffee. What might cause a shift from the original demand curve to the new demand curve?
A. An increase in the price of coffee creamer. B. An expectation that coffee prices will fall in the future. C. An increase in consumers' tastes for coffee. D. A decrease in the price of tea.
If the percentage change in the quantity demanded of a good is greater than the percentage change in price, price elasticity of demand is:
A. elastic. B. inelastic. C. perfectly inelastic. D. perfectly elastic.
Under the merger guidelines written by the DOJ and FTC, a merger may not be challenged if:
A. there is an emergence of new technology. B. there is significant foreign competition. C. the firms involved have monetary problems. D. All of the statements associated with this question are correct.