Using supply and demand analysis, customers will stand in line for gasoline when a price ceiling is in force, even if the price ceiling is at a level higher than the equilibrium price
a. True
b. False
Indicate whether the statement is true or false
False
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If good A is a normal good and income increases, the equilibrium price of A ________ and the equilibrium quantity of A ________
A) rises; increases B) rises; decreases C) falls; decreases D) falls; increases
The limitation that a consumer's total expenditure on goods and services purchased cannot exceed the income available is referred to as
A) maximizing behavior. B) economizing behavior. C) the budget constraint. D) the price constraint.
Procrastination, addiction, and honesty
a. may be explained by preferences that are not transitive b. violate the economist's assumption that "more is better" c. help to explain why the substitution effect is more powerful than the income effect d. are often inconsistent with narrowly defined rationality e. are inferior economic "goods".
Assume that the share of population employed in all countries is 50 percent. Based on the information in the table, which country has the smallest real GDP per capita? CountryPopulation (millions)Average Labor Productivity ($)A1002,000B15010,000C7525,000D25050,000E9560,000
A. Country A B. Country D C. Country B D. Country E