Suppose the current equilibrium price of pizza is $5 . If the government decides the price of pizza cannot rise above $4, the result of this policy would be
a. a shortage
b. a surplus
c. that the market would remain in equilibrium but with a larger quantity bought and sold than at $5
d. at the $4 price, the quantity sold would be greater than the quantity bought
e. a shift of demand to the right
A
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If the marginal rent cost of moving from Apartment 1 to Apartment 2 is -$60, and marginal commuting cost of moving from Apartment 1 to Apartment 2 is $40:
A) moving from Apartment 1 to 2 will save the renter $60 more in rent and $40 more in commuting. B) moving from Apartment 1 to 2 will cost the renter $60 more in rent but save $40 in commuting. C) moving from Apartment 1 to 2 will cost the renter $60 more in rent and $40 more in commuting. D) moving from Apartment 1 to 2 will save the renter $60 in rent but cost $40 more in commuting. Assume that a firm wants to set up a factory. It has four different options. The rent of the factory in the four different locations and the time taken to transport the product from each location to the market is shown in the table below. The opportunity cost of time is $10 per hour. Factory Location Monthly Commuting Time (hours) Monthly Rent ($) Very Far 30 2,060 Far 25 2,100 Close 15 2,300 Very Close 5 2,500
According to the "law of demand"
A) demand generates a supply sufficient to satisfy the demand. B) nothing will be produced unless there is a demand for it. C) people will purchase less of a good when its price rises. D) wants are indefinitely expansible and can never be fully satisfied. E) whatever people want will eventually be supplied.
Which of the following statements about the financial and real sectors is true?
A. For every real asset there is a financial asset. B. For every financial asset there is a real asset. C. For every real transaction there is a financial transaction. D. For every financial transaction there is a real transaction.
According to Joseph Schumpeter, economic growth is achieved through
A) a process termed "creative destruction." B) removing the entrepreneur from the production function. C) centralizing economic production. D) focusing only on making old products better rather than inventing new ones.