For the sake of this question, say that total inventories in the U.S. was $1 trillion in one year and then $1 trillion the next year. Would there be any inventory investment?
A. yes
B. no
C. cannot tell with the given information
Ans: B. no
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Suppose the paper industry is in long-run competitive equilibrium and the demand for paper increases. If the industry has external diseconomies of scale, what will happen to the price of paper in the long run?
What will be an ideal response?
As long as the amount of food stamps an individual receives is less than they would have spent on food without the food stamps, the food stamps act like a straight income transfer
a. True b. False
The fact that the children of the poor drop out of school earlier than other children is evidence of the flawed character of the poor
Indicate whether the statement is true or false
The price of a good is above the equilibrium price,
a. there is a surplus and the price will rise. b. there is a surplus and the price will fall. c. there is a shortage and the price will rise d. there is a shortage and the price will fall. e. the quantity demanded is equal to the quantity supplied and the price remains unchanged.