Some medical authorities announced in the late 1980s that an acne medicine named Retin-A also had previously unknown wrinkle-reducing properties. An economist would expect to find that, after this announcement, the price of Retin-A ____ and the quantity sold ____
a. rose; fell
b. rose; rose
c. fell; fell
d. fell; rose
b
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A reduction in the amount of unemployment
A) shifts the production possibilities frontier outward. B) moves the economy's point of production closer to the production possibilities frontier. C) moves the economy's point of production along the production possibilities frontier. D) moves the economy's point of production further away from the production possibilities frontier.
Accounting profits are
A) total revenue minus explicit costs. B) total revenue minus implicit costs. C) total revenue minus explicit and implicit costs. D) total revenue minus normal costs.
The highest annual inflation rate experienced in the United States during the past 50 years has been around
a. 3 percent b. 9 percent c. 14 percent d. 27 percent e. 1,000 percent
Government spending can ____________ certain elements of long-term growth
a. discourage b. negate c. encourage d. compromise