Suppose there are a series of forest fires that affect the lumber industry while, at the same time, consumers demand more wooden furniture. The wooden furniture market would experience
A. A decrease in price and an indeterminate change in quantity.
B. An increase in quantity and an indeterminate change in price.
C. An increase in price and an indeterminate change in quantity.
D. An increase in price and an increase in quantity.
Answer: C
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In the U.S. economy, which of the following statements is TRUE?
A) More goods are produced than services. B) More services are produced than goods. C) Production is divided evenly between goods and services. D) The economy is too complex to determine the proportion of production that is devoted to producing services.
The civilian labor force consists of all the:
a. people in the economy who are not retired. b. people in the economy over 16 years of age. c. adults in the economy between 18 and 65 years old who are able to work. d. noninstitutionalized adults in the economy who hold jobs or are looking for them. e. citizens in the economy who are graduates of high school.
A change in supply cannot be caused by a change in
a. resource prices b. technology c. prices of other goods d. the price of the good itself e. the number of suppliers
Figure 4-17
Refer to . Suppose a price floor of $7.00 is imposed. As a result,
a.
buyers' total expenditure on the good decreases by $20.00.
b.
the supply curve will shift to the left so as to now pass through the point (Q = 40, P = $7.00).
c.
the quantity of the good demanded decreases by 20 units.
d.
the price of the good continues to serve as the rationing mechanism.