Starting from an equilibrium position,
a. the imposition of a price floor below the equilibrium price will increase the quantity demanded.
b. the imposition of a price floor below the equilibrium price will decrease the quantity exchanged.
c. the imposition of a price floor above the equilibrium price will decrease the quantity demanded.
d. the imposition of a price floor above the equilibrium price will increase the quantity exchanged.
c
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Answer the following statements true (T) or false (F)
1) The expected value of an outcome takes into consideration the associated risk. 2) The greater the risk associated with an outcome and the more risk averse the decision maker, the more likely a high insurance premium will be paid. 3) Because increased costs reduce the return on investment, shareholders may prefer managers make decisions based on the risk and not on the expected profit. 4) Placing all of your investment funds into one stock is an example of diversification. 5) Plaintiffs can be risk averse.
Suppose it is discovered that consumption of chocolate leads to a longer life. This information would lead to
A) an increase in quantity demanded of chocolate. B) an increase in demand for chocolate. C) a decrease in quantity demanded of chocolate. D) a decrease in demand for chocolate.
Which of the following changes aggregate supply and shifts the aggregate supply curve?
i. change in the price level ii. change in potential GDP iii. change in the money wage rate A) i only B) ii only C) iii only D) ii and iii E) i, ii, and iii
Lisa has an income of $250 per week, which she spends entirely on milk and eggs. The price of milk is $2 per gallon and the price of a dozen eggs is $1
What is the opportunity cost of a gallon of milk? If the price of a dozen eggs rises to $1.50, what happens to the opportunity cost of a gallon of milk?