Consider a market that is in equilibrium. If it experiences a decrease in demand, what will happen? The demand curve will shift to the:
A. left, and the equilibrium price and quantity will rise.
B. left, and the equilibrium price will increase and the equilibrium quantity will decrease.
C. left, and the equilibrium price and quantity will fall.
D. right, and the equilibrium price and quantity will fall.
C. left, and the equilibrium price and quantity will fall.
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Which of the following is one of the most important benefits of money in an economy?
A) Money allows for the accumulation of wealth. B) Money makes exchange easier, leading to more specialization and higher productivity. C) Money encourages self-sufficiency and therefore increases economic stability. D) Money allows for the exchange of goods and services.
Producer surplus is the:
a. amount by which the quantity supplied of a good exceeds the quantity demanded of a good. b. measure of producers' willingness to sell a good plus the price of the good. c. measure of how much producers value a good. d. amount consumers actually pay for a good minus the amount the sellers are willing to sell the good.
Your professor loves her work, teaching economics. She has been offered other positions in the corporate world that would increase her income by 25 percent, but she has decided to continue working as a professor. Her decision would not change unless
a. the marginal cost of teaching increased. b. the marginal benefit of teaching increased. c. the marginal cost of teaching decreased. d. the marginal benefit of a corporate job decreased.
Taxes on commodities or on purchases are known as:
A. corporate income taxes. B. sales and excise taxes. C. personal income taxes. D. payroll taxes.