Which of the Following Would Have the Greatest Positive Impact

question 27

Multiple Choice

Which of the following would have the greatest positive impact on a country's domestic economy?

• A)An increase in spending on imports from other countries.
• B)An increase in spending by foreigners on the country's exports.
• C)A decrease in the confidence of foreign investors in the country's economy.
• D)A decrease in the incomes of consumers in foreign countries.

Describe the role and impact of fixed and variable costs on a firm's production decision.

Interpret the effects of market demand changes on price and profits in the short and long run.

Analyze the relationship between economic profits and market entry or exit.

Understand the concept of long-run equilibrium in a perfectly competitive industry.

---

Definitions:

Price Elasticity

An indicator of the sensitivity of the amount of a good demanded in response to its price changes.

Cost-Plus Pricing

A technique for pricing where a distinct markup is added to the unit cost of a product to establish its selling price.

Linear Programming

A mathematical method used to determine the best possible outcome or solution from a given set of parameters or constraints, usually applied in maximizing or minimizing a linear function.

Material Charges Formula

A calculation used to determine the direct costs associated with the materials used in the production of goods or services.