Suppose that the market for salad dressing is in equilibrium. Then the price of lettuce rises. What will happen?
A. The quantity demanded of salad dressing will increase.
B. The supply of salad dressing will decrease.
C. The demand for salad dressing will decrease.
D. The price of salad dressing will rise.
Answer: C
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Some economists develop theories concerning policy issues to
A. further their own political agendas. B. understand what happened in an earlier time period. C. describe current economic events. D. make sound recommendations about policy alternatives. E. help elect new government officials.
The difference between the earnings of construction workers who work on bridges and skyscrapers and those who work on highways is most likely due to
a. differences in education requirements. b. differences in unionization rates. c. a compensating differential. d. apprenticeship requirements.
By how much does the real, bilateral exchange rate change when the nominal, bilateral exchange rate changes from $1.40/£ to $1.60/£, the U.S. tradable basket from $2,100 to $2,200 and the British tradable basket from £1,500 to £1,600?
a. The real exchange rate rises by 16.35%. b. The real exchange rate falls by 3.1% c. The real exchange rate rises by 3.1% d. The real exchange rate falls by 10.8% e. The real exchange rate falls by 12.5%
Trickle-down" which argues that the benefits of policies (tax cuts, etc.) which positively impact higher-income households and businesses, eventually will trickle down to those in lower income brackets and stimulate the economy.
What will be an ideal response?