If other factors remain unchanged, technological progress in producing good X definitely will lead to
A) an increase in the market clearing price of good X and a decrease in the equilibrium quantity of good X.
B) an increase in both the market clearing price and the equilibrium quantity of good X.
C) a decrease in the market clearing price of good X and an increase in the equilibrium quantity of good X.
D) a decrease in both the market clearing price and the equilibrium quantity of good X.
C
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Which of the following is most necessary for a monopolist to survive in the long run?
A) a legal protection from entry B) a perfect product C) a brilliant Chief Operating Officer D) an excellent marketing campaign
Which of the following is included in a nation's current account?
a. Purchases of foreign assets b. Borrowings from abroad c. Foreign purchases of U.S. financial assets d. Investment income receipts e. Purchases of foreign real property
Figure 2-8
Assume that U.S. agricultural land is used either to raise cotton for clothing or to grow wheat. Curve FG in represents the current production possibilities frontier for cotton and wheat. What could cause the production possibilities frontier to shift from FG to FH?
a.
a change in government subsidies that favors wheat production over cotton production
b.
development of a new fertilizer that improves production of wheat, but has no impact on cotton production
c.
development of a new fertilizer that improves production of cotton, but has no impact on wheat production
d.
newly reclaimed swampland that is equally suited to growing either crop
e.
newly reclaimed swampland that can be used to grow either crop, but is better suited to growing wheat
In general, state and local taxes tend to be
A. Flat. B. Proportional. C. Progressive. D. Regressive.