Joe trades an apple to Winston for two oranges. Because the exchange is voluntary, we can conclude that
a. Joe is better off because he gets two things but Winston is worse off because he gives up more items than he receives.
b. Winston is better off because he gives more than he receives.
c. both Joe and Winston are worse off.
d. both Joe and Winston are better off.
d. both Joe and Winston are better off.
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Which of the following is likely to happen if there is an increase in entrepreneurial activity in an economy?
A) The productivity of the economy will increase. B) The inflation rate in the economy will decrease. C) The exchange value of its currency in the foreign exchange market will increase. D) The income per capita of the economy will fall.
Ski resorts have begun to offer activities in the summer, like music festivals and mountain biking, rather than closing down the facilities for the season. This a good decision for a ski resort when
A. the extra revenue exceeds the variable costs of staying open during the summer. B. such activities draw an upscale set of customers. C. these activities reduce fixed costs. D. it provides employment for local residents.
If a monopolist is producing at a point at which marginal revenue is greater than marginal cost, then it should:
a. continue producing at the current level. b. raise its prices. c. lower its prices. d. increase the level of production. e. decrease the level of production.
If tastes for foreign goods and services go up, then we would expect aggregate expenditure to:
A. increase. B. decrease. C. remain constant. D. increase and then sharply decrease more.