In 2014, the price of peanuts was rising, which lead peanut butter sellers and peanut butter buyers to expect the price of peanut butter would rise in the future. Suppose the effect on the buyers was larger than the effect on the sellers
Consequently, in the current market for peanut butter there is a ________ in the price of peanut butter and ________ in the quantity of peanut butter. A) rise; an increase
B) rise; a decrease
C) fall; a decrease
D) fall; an increase
A
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Which of the following changes will cause a downward movement along the money demand curve?
a. An increase in the interest rate b. A decrease in the interest rate c. A decrease in real GDP d. An increase in real GDP e. An increase in the price level
A monopolist maximizes profits by producing where which of the following occurs?
A. MC = P. B. AC = P. C. MC = MR. D. AC = AR.
When Ukraine trades with Italy,
a. both countries are likely made better off. b. only Italy benefits since Ukraine can produce all goods at a higher level of quality than Italy. c. only Ukraine benefits since Italy's low wages guarantee that Italian firms will be profitable regardless of trade. d. neither country will benefit since Ukraine is more efficient than Italy in the production of all goods.
If a larger percentage of Americans attended college, the wage premium would probably
A. continue rising. B. continue falling. C. rise. D. fall.