A fall in the price of a competing product will produce an outward shift in the demand curve for most products
a. True
b. False
Indicate whether the statement is true or false
False
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What could Keynes have meant by his now famous statement, "in the long run we are all dead?"
A) Government intervention is destabilizing, will lead to slower growth in the long run, and will prevent an economy from self-regulating. B) Government intervention in the economy is necessary in times of recession because an economy rarely restores itself to full employment. C) Government intervention in the economy is useless because it takes too long to take effect. D) Government intervention in the economy is only effective if it is not erratic.
According the graph shown, if this economy were open to free trade, it would:
This graph demonstrates the domestic demand and supply for a good, as well as the world price for that good.
A. import this good, because the domestic price is greater than the world price.
B. export this good, because the domestic price is greater than the world price.
C. import this good, because the world price is greater than the domestic price.
D. export this good, because the world price is greater than the domestic price.