If steak is a normal good, what do you suppose would happen to price and quantity during an economic recession?
A. Price would increase and quantity decrease.
B. Price would decrease and quantity increase.
C. Price and quantity would both increase.
D. Price and quantity would both decrease.
Answer: D
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Which of the following people would be considered unemployed assuming that they are actively seeking employment?
A) those who were fired from their job B) those who resigned from their job C) new entrants into the job market D) All of the above are correct.
A(n) _____ is an indirect tax imposed on each sale at each stage of production
a. personal tax b. value-added tax c. excise duty d. sales tax e. ad-valorem tax
Consumers' willingness to pay for a good minus the amount they actually pay for it equals
a. consumer surplus. b. consumer benefit. c. price discriminant. d. deadweight loss.
As one moves down a straight-line, down-sloping demand curve, price elasticity will:
A. change from elastic, to unit elastic, then to inelastic. B. remain the same between any two points. C. change from inelastic, to elastic, then to unit elastic. D. change from unit elastic, to elastic, then to inelastic.