The ABC Computer Company spends a lot of money for advertising designed to convince you that their personal computers are superior to all other personal computers. If the ABC Company is successful, the demand for ABC personal computers
A. and the demand for other firms? personal computers will become less price elastic.
B. will become less price elastic, but the demand for other firms? personal computers will become more price elastic.
C. will become more price elastic, but the demand for other firms? personal computers will become less price elastic.
D. and the demand for other firms? personal computers will become more price elastic.
Answer: B
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Suppose the economy is at point B. If a recession in another country decreases exports, to what point might economy move in the short run?
A) It stays at point B. B) It shifts to a point such as A. C) It shifts to a point such as C. D) None of the above answers are correct because it is the SAS curve that shifts, not the AD curve.
Low risk stocks are usually accompanied by
a. low returns b. no returns c. high returns d. no sales-no one would buy low risk stocks
One topic that microeconomics explores is how prices are determined in individual markets, while macroeconomics is concerned with issues such as the economy's overall rate of inflation, economic growth and unemployment
a. True b. False Indicate whether the statement is true or false
The quantity equation is M x V = P x Y
a. True b. False Indicate whether the statement is true or false