In Great Britain, raising taxes on gasoline has increased the costs of supplying gasoline. As a result, the equilibrium quantity of gasoline ________, and the equilibrium price of gasoline ________
A) increases; rises
B) increases; falls
C) decreases; rises
D) decreases; falls
E) does not change; rises
C
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Everything else held constant, when the current value of the domestic currency increases, the ________ domestic assets ________
A) demand for; increases B) quantity demanded of; increases C) demand for; decreases D) quantity demanded of; decreases
If a perfectly competitive firm is producing the short-run profit-maximizing quantity and is earning positive economic profits, the firm should anticipate ________.
A) the market equilibrium price to increase B) the market equilibrium price to decrease C) earning economic profits indefinitely D) the market supply to decrease
Which of the following statements is false?
A) People who live in cities with good weather receive that benefit for free. B) People who own property in cities with good weather receive higher rents, ceteris paribus. C) Housing prices are higher in cities with better weather, ceteris paribus. D) The demand for housing is higher in cities with good weather, ceteris paribus.
Refer to the information provided in Table 24.4 below to answer the question(s) that follow.
Table 24.4
Refer to Table 24.4. At an output level of $1,500, disposable income is
A. $300. B. $600. C. $900. D. $1,200.