In the event of excess supply in the coffee market:
A. the price of coffee will increase.
B. the price of coffee will decrease.
C. the supply of coffee will decrease (supply will shift to the left) to meet the demand.
D. the demand for coffee will increase (demand will shift to the right) to meet the supply.
Answer: B
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If the price of gasoline rose 50% during a period in which the general price level rose 100%, economic theory would predict
A) a decline in the quantity of gasoline demanded. B) an increase in the quantity of gasoline demanded. C) a decrease in the demand for gasoline. D) an increase in the supply of gasoline. E) less driving by motorists.
Rationality is a normative concept
Indicate whether the statement is true or false
The price indexes that are alternatives to the CPI are ________.
A) unbiased CPI and the unbiased GDP deflator B) the GDP deflator and the chained price index for consumption C) the chained price index for consumption and the CPI deflator D) the core GDP deflator and the CPI deflator E) the GDP deflator and the CPI deflator
How did a great expansion of globalization in the late 1990s increase productivity?
A. Businesses learned how to use computers to produce more output with fewer workers. B. Businesses began sending workers overseas for more training. C. Businesses were able to sell in larger markets as tariffs and import quotas were reduced. D. Businesses learned how to use foreign suppliers to cut costs.