When quantity supplied is greater than quantity demanded, prices tend to:
A. fall.
B. stay the same.
C. remain constant until the next season.
D. rise.
Answer: A
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Suppose Jack's salary increased from $100,000 to $200,000 per year between 2004 and 2014 and the price index increased from 100 to 300 during the same period. Which of the following statements best describes Jack's situation? a. His real income and money income have both increased
b. His real income has increased and money income has decreased. c. His real income and money income have both decreased. d. His real income has decreased and money income has increased. e. His real income has remained unchanged.
Which of the following may involve external benefits? a. drunken driving
b. smoking. c. public education. d. highway congestion.
Refer to Figure 8.2 above. The total fixed costs for The Barber Shop are $3,000. If The Barber Shop produces 300 hair cuts, the average fixed costs are A) $.20. B) $5. C) $10. D) $100.
Given two economic systems, A and B, if economy A has an absolute advantage in the production of widgets, then
A. fewer inputs are necessary to produce widgets in economy A than in economy B. B. economy A is less efficient in the production of widgets than economy B. C. economy A would not benefit from the specialization of production. D. economy A must give up less of all other goods to produce widgets than economy B.