If the equilibrium price of lettuce is $.80 per head and the government imposes a price floor of $.70 per head, the price of lettuce will
A. decrease to $.70.
B. remain at $.80.
C. decrease to $.75.
D. be impossible to determine.
B. remain at $.80.
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Basket of goods A is on an indifference curve that lies further from the origin than basket B. From this we know that
A. the satisfaction from consuming A is more than the satisfaction from consuming B. B. all other consumers would also rank B above A. C. the marginal utility from consuming A is more than the marginal utility from consuming B. D. the prices of the goods in A are more than the prices of the goods in B.
Protective tariffs are:
A. maximum limits on the quantity or total value of specific products imported to a nation. B. excise taxes or duties placed on imported products. C. licensing requirements, unreasonable quality standards, and the like designed to impede imports. D. government payments to domestic producers to reduce the world prices of exported goods.
Starting from long-run equilibrium, a decrease in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. higher; potential D. lower; higher
DSL and broadband internet service would be considered an example of:
A) substitute goods. B) giffen goods. C) inferior goods. D) complementary goods.