Answer the following statements true (T) or false (F)
1. In the market for sushi, an increase in supply and a greater decrease in demand will cause both the equilibrium price and quantity to decrease.
2. In the market for sushi, an increase in the price of fish along with an increase in the popularity of sushi among consumers will cause the equilibrium quantity to increase, but the effect on the equilibrium price is indeterminate.
3. In the market for gasoline, if the change in demand due to the start of the summer driving season is greater than the change in supply due to disruptions in the refinery operations in the Gulf, then the equilibrium quantity will increase.
4. In the market for crude oil, if the change in demand due to falling price of natural gas (a substitute for oil) is greater than the change in supply due to disruptions in oil-well operations in the Middle East, then the equilibrium price of oil will decrease.
5. In the foreign exchange market, if Canadian companies import more products from the U.S., then the demand for Canadian dollars will increase.
1. TRUE
2. FALSE
3. TRUE
4. TRUE
5. FALSE
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Why does the absence of well-defined property rights serve as a stumbling block for the application of the Coase theorem?
What will be an ideal response?
When the firm produces zero output, its variable cost is
a. zero b. the same as total cost c. the same as fixed costs d. the same as price e. infinite
The amount of interest owed on a loan of $75,000 after a year at an interest rate of 1 percent is:
A. $75,750. B. $7,500. C. $82,500. D. None of these is true.
Which of the following statement is correct?
A) When Marginal Product is greater than Average Product, Average Product is increasing. B) When Marginal Product is greater than Average Product, Average Product is decreasing. C) When Marginal Product is greater than Average Product, Average Product is equal to Total Product. D) When Marginal Product is greater than Average Product, Total Product is increasing at a decreasing rate.