Which of the following statements reflect sound economic reasoning?
a. Foreign competition will reduce the wealth of Americans.
b. If it is more economical to acquire a good through trade than by self-production, it makes sense to trade for it.
c. If domestic production of a good will employ lots of people, the good should be produced domestically.
d. Higher tariffs will increase the total volume of international trade.
b. If it is more economical to acquire a good through trade than by self-production, it makes sense to trade for it.
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When the economy is using all of its factors of production, the aggregate supply curve is vertical
Indicate whether the statement is true or false
When the dollar price of the euro increases, there has been a(n):
A. Appreciation of the dollar relative to the euro B. Depreciation of the dollar relative to the euro C. Depreciation of the euro relative to the dollar D. Decrease in incomes in the United States
Answer the following statements true (T) or false (F)
1) It is not possible for a single firm to combine different types of nonlinear pricing. 2) In order to practice any of the advanced pricing techniques, a firm must have some market power. 3) If a firm offers a quantity discount, this is an example of an all-or-nothing offer. 4) If Healthy Bars labels its snack bars "not for resale", Healthy Bars is attempting to prevent arbitrage. 5) If a firm faces a high demand during the summer months and a low demand during the winter months, peak-load pricing can increase the firm's profits compared to charging the same price in the summer and winter months.
Scarcity limits the volume of goods that an economic system can produce, but does not limit the production of services
a. True b. False Indicate whether the statement is true or false