An increase in demand for a product will
a. not affect the value of resources.
b. reduce the production of the good as the price rises. .
c. decrease the profits of sellers.
d. draw more resources into the production of the good.
e. not affect the rate of production since production is fixed.
d. draw more resources into the production of the good.
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If government uses a pollution tax to control pollution, the tax should be set
A) equal to the private cost of production created by the activity. B) equal to the external cost of production created by the activity. C) equal to the social cost of production created by the activity. D) at the amount that will eliminate the pollution completely.
An example of a question that might be explored in microeconomics is to determine
A) the number of workers employed by Intel. B) savings by the household sector. C) why the U.S. economy has grown more rapidly than the Japanese economy. D) the total employment within the U.S. economy.
How does the shape of the aggregate supply curve affect macroeconomic analysis and policy making? Illustrate your answer with the appropriate graphs
Samantha is maximizing total utility while consuming food and clothing. Her marginal utility from food is 50, and her marginal utility from clothing is 25 . If clothing is priced at $10 per unit, the price of food per unit must be
a. $2. b. $2.50. c. $5. d. $20.