An export subsidy raises the domestic price of the product.
Answer the following statement true (T) or false (F)
True
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During recent Global Economic Crises, consumers' real wealth in the U.S. declined as a result of
A) the stock market crash, pricking of the housing bubble, and the increased household borrowing. B) the expansionary fiscal policy, and the expansionary monetary policy. C) the lack of fiscal and monetary policy coordination. D) the banks' decision not to issue additional loans.
The price elasticity of demand
A) depends on the units in which quantity is measured. B) depends on the units in which price is measured. C) depends on the units in which money is measured. D) is independent of the units in which quantity and price are measured.
For a monopolist that is maximizing profits
A) price exceeds marginal cost. B) price equals marginal revenue. C) price equals average total cost. D) marginal revenue exceeds price.
If income rises from $1,000 to $1,400 and consumption rises from $800 to $1,168, the marginal propensity to consume is __________ percent
A) 8 B) 85 C) 15 D) 92