Which of the following comparisons of Q2 and P2 is accurate?
a. The increase from Q1 to Q2 is twice as large as the decrease from P1 from P2.
b. The decrease from Q1 to Q2 is twice as large as the increase from P1 from P2.
c. The increase from Q1 to Q2 is half as large as the decrease from P1 from P2.
d. The decrease from Q1 to Q2 is half as large as the increase from P1 from P2.
d. The decrease from Q1 to Q2 is half as large as the increase from P1 from P2.
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Suppose that the average equilibrium monthly rental price of apartments and rooms in a college town had been steady at $600, but then the college expanded enrollment from 10,000 to 12,000 . Suddenly there is a shortage of rental housing at the prevailing price of $600 . Which of the following is most likely to be true?
a. The shortage occurred because demand increased, and a new market equilibrium will result in higher rental prices and more rental units available on the market. b. The shortage occurred because supply increased, and a new market equilibrium will result in lower rental prices and fewer rental units available on the market. c. The shortage occurred because demand decreased, and a new market equilibrium will result in lower rental prices and fewer rental units available on the market. d. The shortage occurred because demand increased, and a new market equilibrium will result in higher rental prices and fewer rental units available on the market.
If an excise tax is placed on a product that has a perfectly inelastic demand, then:
A. the entire tax will be paid by the consumer. B. the entire tax will be paid by the producer. C. the consumer and producer will each pay a share of the tax. D. the incidence of the tax cannot be determined unless we know the coefficient of price elasticity of supply.
A country that has had success with export-led growth policy is:
A. South Korea. B. Liberia. C. North Korea. D. Russia.
Macroeconomics, as opposed to microeconomics, includes the study of what determines the level of
A) employment in a specific industry. B) employment in the economy. C) output of a specific firm. D) output of a specific industry.