In a world of perfect knowledge and communication, competitive markets, and no uncertainty,
a. there would be neither economic profits nor economic losses.
b. economic profits would exist, but losses would be eliminated.
c. economic profits and losses would exist to a greater degree than presently is the case.
d. there would be economic profits; there is not enough information to comment on economic losses.
A
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The increase in the demand for widgets, shown in the figure above, is the result of an increase in the price of McBoover devices. Therefore
A) widgets and McBoover devices are substitutes. B) widgets and McBoover devices are complements. C) widgets are a normal good. D) McBoover devices are a normal good.
Holding other things constant, if the Japanese Yen, appreciates, it makes the Japanese products
a. Less attractive to US customers b. More attractive to US customers c. Neither more nor less attractive to US customers d. None of the above