The demand for microwaves in a certain country is given by: D = 8,000 - 30P, where P is the price of a microwave. Supply by domestic microwave producers is: S = 4,000 + 10P. If this economy opens to trade while the world price of a microwave is $50, the domestic quantity demanded will be ________ and quantity supplied will be ________.
A. 6,000; 4,000
B. 6,500; 3,000
C. 5,000; 5,000
D. 6,500; 4,500
Answer: D
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During the recession of 2009, the consumption function temporarily shifted ________ as a fall in house prices ________ wealth and encouraged people to ________ more
A) downward; raised; spend B) downward; raised; save C) upward; lowered; save D) downward; lowered; save E) downward; lowered; spend
Adam Smith wrote that the:
a. economic problems of eighteenth-century England were caused by free markets. b. government should control the economy. c. pursuit of private self interest promotes the public interest in a market economy. d. public or collective interest is not promoted by people pursuing their self interest.
Which of the following is a determinant of Investment spending?
A. Real income B. Expected future income C. Taxes D. Wealth
Consider a production possibilities curve for an economy producing bicycles and video game players. It is possible to increase the production of bicycles without sacrificing video game players if:
a. the production possibilities curve shifts outward due to technological progress b. the production possibilities curve shifts outward due to increased immigration (which enlarges the labor force). c. the economy moves from a point inside the production possibilities curve to a point on the curve. d. any of the above occur.