Give three reasons why a demand curve slopes downward to the right.
What will be an ideal response?
ANS:
First, more of a good will be purchased at a lower price, since those who are willing to pay a high price may buy even more of the product at a lower price. Second, those who do not think the product is worth a high price may purchase it at a lower price. Third, those who cannot afford to buy it at a high price may be able to afford it at a lower price.
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In the United States today, economists estimate that the natural rate of unemployment is between ________ and ________ percent
A) 3; 5.5 B) 3; 4 C) 6.5; 7.5 D) 5; 6.5
John raises bees to pollinate his apple trees. One of the bees just stung him. This is a(n)
A) private cost. B) social cost. C) internality. D) common property.
Suppose you had the choice of attending two universities. University A pays all of its professors the same wage and awards the same raises. University B pays each professor according to market wages and productivity. Which university would you rather attend and why?
Federal funds, by definition, are the
What will be an ideal response?