Due to consumer demand, a candy manufacturer has decided to boost production of caramel chews. This action answered which basic economic question?
a. How will the goods and services be produced?
b. Who will get the goods and services?
c. What is the best method of production?
d. What goods and services will be produced?
d. What goods and services will be produced?
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If quantity of tea is measured on the horizontal axis and quantity of coffee is measured on the vertical axis, an increase in the price of coffee will cause the budget constraint to:
A) pivot leftward along the vertical axis. B) pivot rightward along the vertical axis. C) pivot leftward along the horizontal axis. D) pivot rightward along the horizontal axis.
Which of the following statements is FALSE?
A) A consumer has only one indifference curve. B) A consumer possesses a preference map. C) An indifference curve is a curve that shows the combination of goods among which a consumer is indifferent. D) The marginal rate of substitution is the rate at which a consumer will give up good y to get more of good x and remain on the same indifference curve.
When a firm’s fixed costs increase it should raise its prices in order to maximize profits.
Answer the following statement true (T) or false (F)
The main reason for our balance of payments deficits has been
A. military spending abroad. B. spending by U.S. tourists abroad. C. our negative balance of trade. D. None of these choices are correct.