Which of the following events must cause equilibrium quantity to fall?
a. demand increases and supply decreases
b. demand and supply both decrease
c. demand decreases and supply increases
d. demand and supply both increase
b
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The theories of economics, with surprisingly few exceptions, are extensions of which of the following assumptions about people?
A) People will do whatever earns them the most money. B) People will do whatever helps them to be "one up" on others. C) People will do whatever makes them popular. D) People will do whatever most effectively promotes the common good. E) People will do whatever yields them the largest net benefit.
An increase in the price of a firm's product
A) decreases its value of marginal product of labor. B) increases its demand for labor. C) increases its supply of labor. D) None of the above answers is correct.
When consumers decide what goods and services the economy produces, they are said to exercise
a. control over production of resources b. control over all economic activity c. the direction of the circular flow d. consumer sovereignty e. control over nonrenewable resources
In calculating the CPI, a fixed basket of goods and services is used. The quantities of the goods and services in the fixed basket are determined by
a. surveying consumers.
b. surveying sellers of the goods and services.
c. working backward from the rate of inflation to arrive at imputed values for those quantities.
d. arbitrary choices made by federal government employees.