If both supply and demand decrease, which of the following happens?
a. The equilibrium quantity increases.
b. The equilibrium price and the equilibrium quantity increase.
c. The equilibrium price and the equilibrium quantity decrease.
d. The equilibrium price decreases and the equilibrium quantity is indeterminate.
e. The equilibrium quantity decreases and the equilibrium price change is indeterminate.
E
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Explain the difference between nominal wages and real wages
What will be an ideal response?
Which of the following statistics can turn negative?
A. inflation rate B. CPI C. unemployment rate D. GDP
Recall the Application about Rory McIlroy and weed-whacking to answer the following question(s). The Application assumes that Rory McIlroy could whack down all the weeds on his estate in one hour at an opportunity cost of $1,000, but it would take 20 hours for a gardener to do it at a price of $10 per hour.If Rory McIlroy only earned $500 per hour playing golf instead of $1,000 per hour, what should he do?
A. He should still hire the gardener. B. He should do the weed-whacking himself. C. He should hire a less-productive gardener. D. He should be indifferent as to who does the weed-whacking, for the difference in hourly earnings would now be insignificant.
Suppose that a tire factory produces $825,000 of output and causes $70,000 worth of pollution as a result of production. The tire factory's official contribution to GDP would be ________ and its overall contribution to society would be ________.
A. $825,000; $895,000 B. $895,000; $825,000 C. $825,000; $755,000 D. $755,000; $825,000