Consumption expenditure tends to increase when consumers have higher levels of debt
a. True
b. False
Indicate whether the statement is true or false
False
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Compared to the outcome when the firms are price takers, competitive price-searcher markets will result in
a. a wider variety of products and higher prices. b. less product variety and higher prices. c. a wider variety of products and lower prices. d. less product variety and lower prices.
Microeconomics is concerned with issues such as
A. The demand for bottled water by individuals. B. Maintaining a strong level of economic growth. C. The level of inflation in the economy. D. All of the choices are correct.
A large increase in the supply of HD-TV sets occurs simultaneously with a smaller decrease in its demand. As a result the equilibrium price will:
A. Increase and the equilibrium quantity will decrease B. Increase and the equilibrium quantity will increase C. Decrease and the equilibrium quantity will decrease D. Decrease and the equilibrium quantity will increase
Richard receives government transfer payments and currently consumes 5 guns and 6 goose livers. Assume the price of guns decreases by 10% and the price of goose liver increases by 20%. The government raises Richard's transfer payments so he can still afford 5 guns and 6 goose livers. Does this constitute a true cost-of-living adjustment (COLA)?
A) No. Richard is overcompensated. B) No. Richard is undercompensated. C) Yes. The payment just achieves the right level of compensation. D) Not enough information.