Exit from a market will stop when
A) accounting losses are zero.
B) the cost of capital is equal to the risk-free rate of return.
C) economic losses are zero.
D) none of these choices.
C
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If the market clearing price of computer tablets falls from $400 to $300, and the market clearing output decreases from 5 million to 4 million units,
A) demand decreased and supply remained unchanged. B) supply increased and demand remained unchanged. C) demand increased and supply remained unchanged. D) supply decreased and demand remained unchanged.
Suppose that domestic investment in Canada is 10.7% of GDP, and Canadian national savings is 13% of GDP. What is Canada's foreign investment as a percentage of GDP?
A) 1.15% B) 2.3% C) 15.3% D) 23.7%
In the short run, a surplus federal budget _____
a. reduces national saving b. boosts domestic saving c. stimulates aggregate demand d. promotes economic growth in the long run e. increases the federal debt
The price elasticity of demand between milk and soda is likely to be:
A. negative, because the goods are complements. B. positive, because the goods are complements. C. negative, because the goods are substitutes. D. positive, because the goods are substitutes.