Question

The export/GDP ratio has generally __________ worldwide in recent decades.

Select the correct answer below:

increased

declined

remained constant

approached 1

Which of the following examples illustrates quantity supplied?

Select the correct answer below:

Firm A's costs of production decreased, so it wants to sell more at any price.

Technology improvement has made it cheaper to produce TV's so producers want to supply more.

Firm B has to reduce production of watches and reinvest into producing jewelry which is more profitable.

The price of houses has increased dramatically so more homeowners want to sell their house.

In market equilibrium, there are neither _________ nor __________.

Select the correct answer below:

surpluses; shortages

prices; quantities

high prices; low prices

none of the above

A price floor will most likely create an excess _________ for a particular good in a competitive market.

Select the correct answer below:

supply

demand

When the work required to produce a good or service is divided into tasks that are performed by different workers, that is called

Select the correct answer below:

economies of scale

specialization

division of labor

productivity

Answer 1