Wheat is used to produce cereal. When the price of wheat falls, the
A) demand for wheat increases.
B) supply of wheat decreases.
C) supply of cereal increases.
D) demand for cereal increases.
E) demand for cereal decreases.
C
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All of the following are examples of nonpoint source pollution EXCEPT
a. urban runoff c. agricultural runoff b. sulfur emissions from power plants d. snowmelt from city streets
As the real interest rate in the domestic loanable funds market increases,
a. the cost of purchasing goods and services during the current period will decline. b. the net inflow of capital from abroad will increase. c. the inflationary premium will rise, and the money rate of interest will decline. d. the inflationary premium will fall, and the money rate of interest will rise.
Lunch in Jamie's dorm is an all-you-can-eat buffet, served from 11 a.m. until 1 p.m. By noon, the buffet is picked over, and by 12:30, there are very few popular items left. The garbage bins, though, are full of food. If the cafeteria changed its policy so that students had to pay for each item chosen, students would:
A. encounter shortages earlier in the day. B. select only the most expensive items in the buffet. C. make the same selections as before, but eat more of what they select. D. only select an item if its marginal benefit is greater than or equal to its price.
The notion that the money in your possession will buy less when the price rises is provided as the explanation for
A. the real-balances effect. B. diminishing marginal utility. C. the substitution effect.