What is the best inference about the impact of a decrease in transportation costs?
a. The demand and supply curves will shift out, which will increase quantities of goods.
b. The supply curve will shift out, which will lead to lower prices to consumers.
c. Farmers will earn a smaller share of the selling price of their crops.
d. The demand curve will shift out, which will lead to higher prices and quantities of goods.
b. The supply curve will shift out, which will lead to lower prices to consumers.
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As perfectly competitive firms leave a market because they are incurring an economic loss, the price of the good ________ and the economic loss of each remaining firm ________
A) rises; increases B) rises; decreases C) falls; increases D) falls; decreases
In economics, what differentiates the short run from the long run?
What will be an ideal response?
The vertical intercept of the consumption function equals ________ and the slope equals ________.
A. autonomous consumption; the mpc B. the mpc; autonomous consumption C. the planned component of consumption; the unplanned component of consumption D. the unplanned component of consumption; the planned component of consumption
Which of the following is an example of an intermediate good?
A. the pizza sauce you purchase to make pizzas to sell for a fund-raiser for an organization you belong to B. lumber you buy to build a house for your dog C. the chocolate you buy to make yourself some cookies D. the dough you buy to fix yourself a pizza for dinner