If we observe a decrease in the price of a good and an increase in the amount of the good bought and sold, this could be explained by a(n):
a. increase in the supply of the good. b. increase in the demand for the good.
c. decrease in the demand for the good. d. decrease in the supply of the good.
a
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The fundamental economic problem is: a. poverty
b. unemployment. c. scarcity. d. inflation.
The relationship between advertising and product differentiation is
a. positive; the more differentiated the product, the more a firm is likely to spend on advertising. b. negative; the more differentiated the product, the less a firm is likely to spend on advertising. c. zero; there is no relationship between product differentiation and advertising. d. irrelevant; firms with differentiated products do not need to advertise.
If the quantity of houses supplied in an area increases 10 percent when the price goes up 25 percent, the supply:
A. is inelastic. B. is perfectly elastic. C. is elastic. D. is unit elastic.
The nations of the eurozone have:
A. abandoned their national currencies and switched to a common currency. B. abandoned their national currencies and switched to American dollars. C. formed a single country called the Union of European Nations (UEN). D. recently admitted 10 new members.