A surplus exists in the market for Barbie dolls at the prevailing price. The surplus will be eliminated by a price:
a. increase, decreasing the supply and increasing the demand
b. decrease, decreasing the supply and increasing the demand.
c. decrease, increasing the quantity supplied and increasing the quantity demanded.
d. decrease, decreasing the quantity supplied and increasing the quantity demanded.
d
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Refer to the above figure. Suppose that the economy starts at AD1. If the government reduces taxes, then the economy goes to AD2, but then falls back to AD3. This is an example of
A) complete crowding-out effect. B) partial crowding-out effect. C) Ricardian equivalence. D) laissez-faire.
The figure above shows a nation's production possibilities frontier. In the figure, point A shows
A) the minimum quantity of pizza that the society must produce. B) the maximum quantity of pizza that can be produced. C) an unattainable point. D) an attainable point with unemployed resources. E) More information is needed to determine which of the above answers is correct.
Suppose Andrea is taking just two courses and is at a point on her PPF of grades for those two courses. Now this PPF shifts inward and Andrea moves to a point on the new PPF. Which of the following would be impossible after her PPF has shifted inward compared to before the PPF shifted?
A) both of her grades to fall B) both of her grades to rise C) one of her grades to rise and the other grade to fall D) one of her grades to fall while the other grade stays constant
To finance medical care, the federal government raises the tax per pack paid by sellers of cigarettes. Other things being equal, the price of cigarettes rises because of a(n):
A. upward movement along the supply curve for cigarettes. B. rightward shift of the supply curve for cigarettes. C. downward movement along the demand curve for cigarettes. D. leftward shift of the supply curve for cigarettes.