If the actual price level is lower than the expected price level reflected in long-term contracts,
a. many firms will find production more profitable than they had expected and will increase the quantity of output supplied
b. many firms will find production less profitable than they had expected and will decrease the quantity of output supplied
c. many firms will find production more profitable than they had expected and will decrease the quantity of output supplied
d. many firms will find production less profitable than they had expected and will increase the quantity of output supplied
B
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Interest in environmental problems has intensified, perhaps because
A. for the first time in history in the 1970s, people began to die from pollution-related diseases. B. rising incomes have caused people to be more concerned with the quality of their lives. C. the centrally planned economies are polluted. D. decentralized economies are less polluted.
The producer’s surplus is equal to the difference between how much the seller can charge for a product and how much the consumer is willing to purchase it for.
Answer the following statement true (T) or false (F)
Programs to equalize individual income would most help ______.
a. medium-income single people b. low-income large families c. high-income married couples d. high-income single people
At one time, sea lions were depleting the stock of steelhead trout. One idea to scare sea lions away from the Washington coast was to launch fake killer whales, which are predators of sea lions. The cost of making the first whale is $16,000 ($5,000 for materials and $11,000 for the mold). The mold can be reused to make additional whales, and so additional whales cost $5,000 each. Based on these numbers, the average total cost of making five fake killer whales would be:
A. $11,000. B. $36,000. C. $7,200. D. $5,000.