If the United States exports 6 million bushels of corn to Japan and thereby earns income with which it imports 3 million digital video recorders from Japan, the United States' terms of trade with Japan for corn and digital video recorders is 2:1.
a. true
b. false
Ans: a. true
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Recently, consumption has comprised approximately
A) one-half of GDP. B) two-thirds of GDP. C) three-fourths of GDP. D) four-fifths of GDP.
In a competitive market, profit can be considered a reward to businesses that
a. produce a good that consumers value more highly than its component resources. b. reduce the value of resources used as inputs in production. c. prohibit rival firms from entering the market and competing. d. control costs, rather than following the wishes of consumers when deciding what products to produce.
Refer to the graph shown. Suppose the market price is $4. At this price, a perfectly competitive firm should:
A. shut down in the short run but continue production in the long run. B. continue to produce in the short run but shut down in the long run. C. continue to produce in both the short run and the long run. D. shut down immediately.
In utility analysis, a consumer's tastes and preferences are assumed to be
A) dependent on income and education. B) predetermined and constant. C) dependent on national origin. D) non-existent