Suppose the market price of zinc doubles. Which of the following scenarios is most likely?
A) The demand for zinc miners will increase, raising the market wage rate.
B) The demand for zinc miners will decrease, reducing the market wage rate.
C) The demand for zinc will increase, raising the market price further.
D) The demand for zinc miners will decrease, reducing the market price back to its original price.
Answer: A
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Which of the following is likely to happen, if consumption in an economy falls?
A) Asset prices rise. B) Household bankruptcies rise. C) Labor supply falls. D) Mortgage defaults fall.
The Taylor rule specifies
a. a constant relationship between interest rates and output. b. a constant relationship between interest rates, output, and inflation. c. a flexible relationship between interest rates, output, and inflation. d. a fixed relationship between inflation and output. e. none of the above.
When the federal government is running a budget deficit:
a. government tax revenues exceed government expenditures. b. government expenditures exceed government tax revenues. c. the economy must be in an economic recession. d. the size of the national debt will decline.
Economies of scale imply that within some range one can increase the size of operation and:
A. total cost will decrease. B. fixed cost will decrease. C. average total cost will decrease. D. average total cost will increase.