According to the text, when management selects a price or quantity, it also selects the other. Explain why this is true.
What will be an ideal response?
The firm’s demand curve determines what quantity can be sold at various prices. Each point on the demand curve represents a price-quantity pair. Therefore, selecting one means selecting the other.
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a. raises both U.S. exports and U.S. net exports. b. raises U.S. exports and lowers U.S. net exports. c. raises both U.S. imports and U.S. net exports. d. raises U.S. imports and lowers U.S. net exports.
Related to the Economics in Practice on p. 105: Researchers found that after a few years of a tax relief policy for foreigners, the fraction of foreigners in the top 0.5 percent of income earners in Denmark almost doubled. The researchers concluded that for this group of workers, labor supply seems to be
A. perfectly inelastic B. unit elastic. C. elastic. D. inelastic.
The ease with which one asset can be converted into another asset or into goods and services is called:
a. ?durability. b. ?utility. c. ?portability. d. ?liquidity. e. ?divisibility.
A central bank is
A) an international bank. B) the largest bank in the country. C) a banker's bank. D) the largest bank in the country's capital.