Refer to the information provided in Figure 3.15 below to answer the question(s) that follow.
Figure 3.15Refer to Figure 3.15. The current quantity of bags of pretzels supplied is 100. You accurately predict that in this market
A. price and quantity supplied decrease and quantity demanded increases.
B. price tends to remain constant and quantity supplied increases.
C. price and quantity demanded increase and quantity supplied decreases.
D. price, quantity demanded, and quantity supplied decrease.
Answer: A
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According to physicians, people should drink eight full glasses of water per day to maintain optimal health; it is now common knowledge. But people don't necessarily follow doctor's orders because
A) only they know what they need. B) people value other goods in addition to optimal health. C) we only really need a few ounces of water each day. D) nobody considers optimal health to be desirable.
Suppose coal is mined at a zero marginal cost and is priced competitively. If the price of coal is growing faster than the interest rate, then coal miners
a. are making positive economic profits. b. will increase the amount of coal left unmined. c. should extract more coal now and less coal in the future. d. will exit the industry in the long run.
Which of the following is NOT a reason why economists usually work with mathematical models?
A. Because most economic choices are quantitative in nature. B. Mathematical models can provide precision, while quantitative models cannot. C. Mathematical modeling imposes intellectual rigor. D. Mathematical models can be used to settle disputes over normative economic questions.
The knowledge and skills possessed by the workforce is known as
A. Human finance. B. Human capital. C. The inequality trap. D. Investment capital.