Other things equal, the supply of index cards is likely to be affected by all of the following except one. Which is the exception?
a. the price of wood pulp used in the production of index cards
b. the technology in the index card production process
c. the price of index cards
d. the price of packaging material (a substitute in production)
e. the future price of index cards expected by producers
C
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When compared with a perfectly competitive market with identical costs of production, a pure monopoly will produce ________.
A. more output and charge the same price B. less output and charge the same price C. less output and charge a higher price D. more output and charge a higher price
The idea of a "New Economy" driven by hi-tech equipment such as computers, cell phones, and the World Wide Web was rooted in part in the apparent simultaneous reversal of which of the following economic problems?
A) inflation B) slow growth in productivity C) the budget deficit D) All of the above
Legal limits on prices will tend to cause misallocation of resources because
a. production (or opportunity) cost no longer corresponds to market price. b. people are unable to determine their preferences at the high or low price. c. producers no longer have incentive to be profitable. d. consumers no longer have incentive to spend their income efficiently. e. All of the above are correct.
If Ms. Anniston transfers $1,000 from her checking account to her money market account, then
a. M1 falls and M2 remains the same. b. M1 falls and M2 rises. c. both M1 and M2 rise. d. M1 remains the same and M2 rises.