Other things constant, which of the following would tend to decrease the demand for Disney World vacations?
A) A rise in the price of Hawaiian vacations (a substitute for Disney World)
B) A rise in income, if Disney World vacationing is a inferior good
C) A fall in the price of air travel (a complementary good)
D) New information that Disney World will raise its prices after this summer
E) All of the above.
B
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One obstacle to the adoption of the export promotion model by countries in other regions is that
A) the Uruguay Round of the GATT forbids many types of export promotion policies. B) the Washington Consensus opposes the spread of this model. C) research and development for new exports is too expensive. D) only noncommercial R&D is permitted under the rules of the GATT. E) industrial monopolies in the high-income countries will block further exports by developing countries.
Assume that a firm's marginal revenue curve intersects the rising portion of its marginal cost curve at 500 units of output. At this output level, a profit-maximizing firm's total cost of production is $1,000 . If the price of the product is $5 per unit, the total revenue earned by the firm will be:
a. $1,500. b. $250. c. $500. d. $2,500. e. $1,000.
If a country engaged in free trade has an unlimited quantity of imports of a good available at a fixed price, the supply curve for that good is
a. upward sloping. b. perfectly inelastic. c. downward sloping. d. perfectly elastic.
If the opportunity cost of 1 wristwatch is 4 wall clocks in Japan and 2 wall clocks in Germany, it makes sense for Japan to produce wristwatches.
Answer the following statement true (T) or false (F)