A decrease in confidence will cause
A. AS to decrease (move up and to the left).
B. AD to decrease (move to the left).
C. AS to increase (move down and to the right).
D. AD to increase (move to the right).
Answer: B
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The difference in wages between college graduates and high school graduates:
A. has increased in recent years. B. is smaller than in the past. C. is nonexistent when labor markets are in equilibrium. D. has been stable for several decades.
Suppose the price of lumber decreases. In the market for new homes, we would expect which of the following to occur?
A) the market clearing price will fall and the equilibrium quantity will rise. B) the market clearing price will rise and the equilibrium quantity will fall. C) both the market clearing price and the equilibrium quantity will fall. D) both the market clearing price and the equilibrium quantity will rise.
Which of the following is true of exchange?
a. The value of a good is determined by the cost of the resources required to produce the good. b. Exchange makes it possible for trading partners to produce more goods through division of labor and adoption of mass production methods. c. Nothing new is created by exchange; if one party to an exchange gains, the other must lose an equal amount. d. Both a and b are true.
Which of the following would be counted in the U.S. GDP for 2015?
A. A 2015 Ford Fiesta made in Mexico B. The $5,000 an investor used to purchase stock in Home Depot in the Fall of 2015 C. Ford buying tires from Goodyear for new Ford Mustangs D. Clothing produced at a boutique shop in LA for the Fall 2015 fashion week