Suppose the price of cheese rises. In the market for pizza, one would expect that
A) the supply of pizza would increase, and the price would fall.
B) the demand for pizza would increase, and the price would increase.
C) the demand for pizza would decrease, and price would fall.
D) the supply of pizza would decrease, and price would rise.
D
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Demand curves with constant slopes must have different own-price elasticities as one moves along the demand curve.
Answer the following statement true (T) or false (F)
Consider the following economic agents:
a. the government b. consumers c. producers Who, in a modern mixed economy, decides what goods and services will be produced with the scarce resources available in that economy? A) consumers B) consumers and producers C) producers D) the government E) the government, consumers, and producers
The seven Fed governors, the president of the Federal Reserve Bank of New York, and four of the presidents of the other regional Federal Reserve Banks constitute the:
A. National Monetary Commission. B. Federal Open Market Committee. C. Federal Reserve System. D. Board of Governors.
Which of the following statements regarding the cheap foreign labor argument is correct?
A. If there is an abrupt change in foreign competition that severely penalizes American workers, the U.S. government should immediately adopt protectionist measures. B. In the long run, labor will be cheap (wages are low) in those nations where labor is most productive. C. If workers in other countries are willing to supply their products with little compensation, this must ultimately raise the standard of living of the average American worker. D. American workers can never suffer from foreign competition since our monetary and fiscal policies always produce high employment at home.