The rational outcome of a low-price guarantee policy is that:
A. both firms will sell at the low price.
B. one firm will sell at a low price and the competitor will sell at a high price.
C. both firms will sell at the high price.
D. consumers will be better off.
Answer: C
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Which of the following is not a reason why low-income countries might experience low economic growth?
A) The country has a good education system. B) The country has a low rate of saving and investment. C) The country has endured extended periods of war. D) The country fails to enforce a rule of law.
Other things the same, if foreign residents desired to purchase more U.S. wheat
a. the exchange rate and net exports would rise. b. the exchange rate would rise and net exports would be unchanged. c. the exchange rate would fall and net exports would be unchanged. d. the exchange rate would fall and net exports would rise.
A depreciation of the dollar relative to another currency will raise U.S. exports, lower U.S. imports, and raise U.S. net exports
Indicate whether the statement is true or false
The Valley View town council has just purchased a lot and built a soccer field for free public use. What is the main cost of the soccer field to the average citizen?
a. There is no cost because anyone can use it. b. The cost is the lost chance to do other things with the money and land. c. The cost is the user fee required to play soccer there. d. The cost is the salaries of the public officials who made the decision.