Suppose the market clearing price for apples falls from $3.00 to $2.00 per pound, and the overall market clearing output decreases from 1 million to 1/2 million pounds. How can we explain the fall in price and fall in market output?
A) Supply decreased and demand remained unchanged.
B) Supply remained unchanged and demand decreased.
C) Demand increased and supply remained unchanged.
D) Demand remained unchanged and supply increased.
B
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The Earned Income Tax Credit avoids the poverty trap by doing which of the following?
a. Lowering benefits by 21.06 cents for every dollar earned above $17,530 b. Insisting people work in order to claim the benefit c. Allowing workers to keep their benefits no matter how high their income increased d. Increasing benefits by 21.06 cents for every dollar earned above $17,530
In 1975, Congress passed a tax rebate to spur consumer spending. Consumers
A. spent the entire amount of the tax savings, boosting the economy, as planned. B. did not spend any of the amount of the tax savings. C. saved a substantial share of the tax savings and spent the rest. D. saved a small portion of the tax savings, and spent the rest.
Which of the following would most likely be part of the study of microeconomics?
A) how General Motors makes decisions regarding its production goals B) national income C) the total economic output of our domestic economy D) overall price stability in the United States
The production possibilities curve represents the set of all:
A. feasible combinations of goods that the economy can produce given that a nation's resources are fully employed. B. factors of production that can be used to manufacture goods and services. C. combinations of goods and services that can be used in the production of other goods and services. D. nonlinear forms of production in the economy.