The "opportunity cost" of producing any good
What will be an ideal response?
depends on the demand for the resources to produce that good and hence on the demand for all goods.
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When area income increases by 20 percent, _______.
a. quantity demanded rises by 10.0 percent. b. quantity demanded falls by 10.0 percent. c. quantity demanded does not change. d. quantity demanded falls by 7.5 percent. e. quantity demanded rises by 7.5 percent.
The economy of China is in transitioon. What does this mean?
a) investments are determines by state conrtol instead of by private decision b) The conomy is moving from central planning toward a market-based system c) Individual firms are in the process of being sold to the state
If global prices are lower than domestic prices, the short-run Phillips curve is likely to be horizontal.
Answer the following statement true (T) or false (F)
? If the government removes a binding price floor from a market, then the price paid by buyers will
a. increase, and the quantity exchanged will increase.
b. increase, and the quantity exchanged will decrease.
c. decrease, and the quantity exchanged will increase.
d. decrease, and the quantity exchanged will decrease.