all other things being equal, quantity demanded falls when prices rise and rises when prices fall
What will be an ideal response?
law of demand
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Beer and wine were difficult to find during the prohibition on alcohol, but whisky and gin were plentiful. Why?
A) Beer and wine were illegal; whisky and gin weren't. B) The drinking public only wanted whisky and gin. C) Criminals found it much more efficient to produce liquor. D) Police were willing to overlook production and consumption of whisky and gin because they believed liquor was less dangerous than beer and wine. E) Government officials were interested in seeing what would happen to rate of alcohol poisoning in the United States.
The primary reason unionization in the United States has been declining is the shift of the U.S. labor force into service industries and out of manufacturing.
Answer the following statement true (T) or false (F)
Suppose that an Italian ice cream firm is facing a linear demand curve and that the current price for the Italian ice cream is set at a point where the price elasticity is 1.7. If the firm decreases the product price, the total revenue will:
A. increase if at the new price, the elasticity is still greater than 1. B. increase if at the new price, the elasticity is lower than 1. C. decrease regardless of the size of the price decrease. D. increase regardless of the size of the price decrease.
Our model of long-run economic growth suggests that
A) the U.S. growth slowdown since 1950 has been caused largely by low saving in the U.S. B) a higher rate of saving in the U.S. cannot do much to increase the U.S. growth rate over the next two decades. C) saving in the U.S. has exceeded the golden-rule level. D) all of the above E) none of the above