When the supply of bubble gum increases while the demand for bubble gum decreases, the equilibrium ________ of bubble gum will definitely ________, ceteris paribus.
A. price; increase
B. price; decrease
C. quantity; increase
D. quantity; decrease
Answer: B
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Make use of a graph of the foreign exchange market to show how the Brazilian Central Bank can use an unsterilized intervention to reduce the value of its currency, the real, in terms of the dollar
What will be an ideal response?
Refer to Table 2-9. Does either Japan or Thailand have an absolute advantage and if so, in what product?
A) Thailand has an absolute advantage in rice. B) Japan has an absolute advantage in wristwatches. C) Japan has an absolute advantage in rice. D) Thailand has an absolute advantage in both products.
Minimum wage legislation
a. sets a price ceiling above the market-clearing price b. has no impact if the minimum wage is above the market-clearing price c. affects every worker in every trade in precisely the same way d. creates some degree of unemployment when the minimum wage is above the equilibrium wage e. is opposed by organized labor
Increased concern about environmental problems derive partly from
a. concerns about increasing economic output. b. concerns about unemployment and inflation. c. new awareness that the problems exist. d. concerns about the quality of life.