A shortage will occur if a ________ is set ________ the equilibrium price.
A. price floor; above
B. price ceiling; above
C. price ceiling; below
D. price floor; below
Answer: C
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Economic status tends to be passed on from one generation to the next _____
a. regardless of the monetary wealth that is transmitted from parents to children b. because of the monetary wealth that is transmitted from parents to children c. in nearly all societies d. a and c
"Cheap talk" is considered cheap because
A) communications via phone or email these days has a cost that is close to zero. B) a firm can say anything, but may actually do something different. C) the cost of talking is far outweighed by the gains to be made in coordinating efforts. D) firms avoid the costs of hiring lawyers.
After a hurricane in Florida knocked out the regional water supply for several days, the demand for bottled water increased sharply. In a market economy, how will this increase in demand affect the equilibrium price and quantity of bottled water?
A. Price will increase, and quantity will decrease. B. Price will decrease, and quantity will decrease. C. Price will decrease, and quantity will increase. D. Price will increase, and quantity will increase.
In the short run, the marginal-revenue product curve is ________ because of ________.
A. downward sloping; diminishing returns B. upward sloping; increasing returns C. downward sloping; increasing returns D. upward sloping; diminishing returns