A booming economy can make investors:
A. wary of future downturns, and shift the supply curve for loanable funds to the left.
B. eager to borrow money, and shift the demand curve for loanable funds to the right.
C. eager to borrow money, and shift the supply curve for loanable funds to the right.
D. wary of future downturns, and shift the demand curve for loanable funds to the left.
Answer: B
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If a monopoly is operating on the demand curve where price elasticity is equal to -3, and price equals 3, then MR is equal to
A) -1. B) 1. C) -2. D) 2.
A country currently is using all its land to produce wheat and grapes. However, the land most suited to growing grapes is being used to produce wheat, and the land most suited to growing wheat is being used to produce grapes. Which of the following statements is true?
a. Production of both wheat and grapes can be increased by shifting tracts of land to their best uses. b. Production of both wheat and grapes can be increased only if more land becomes available. c. production of wheat can increase only if production of grapes decreases. d. Production of grapes can increase only if more labor and machinery become available. e. Production of neither wheat nor grapes is possible without more land becoming available.
Which of the following is a commonly-cited benefit of advertising?
a. Advertising can be a signal of the quality of a product. b. Advertising impedes competition. c. Advertising reduces the deadweight loss associated with monopolistic competition. d. Advertising encourages free entry, which increases profits.
What must be present to realize gains from comparative advantage and specialization?
a. government b. credit c. trade d. currency