Notice the situation that results when the price of coffee is $4 a pound. Which of the following would establish equilibrium?
a. Keep the price the same; increase the quantity supplied to 8,000 pounds.
b. Decrease the price to $2; keep the quantity supplied the same.
c. Decrease the price to $3; decrease the quantity supplied to 5,000 pounds.
d. Increase the price to $5; decrease the quantity supplied to 4,000 pounds.
c. Decrease the price to $3; decrease the quantity supplied to 5,000 pounds.
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If Greece chose to abandon the euro and the Greek government decided to exchange euro bank deposits for drachmas, the affected bank depositors would experience gains if the
A) euro then appreciated. B) euro then depreciated. C) drachma then appreciated. D) drachma then depreciated.
What is the? short-run effect of increased deficit spending on an economy experiencing a recessionary? gap?
a. Aggregate demand will increase, creating an inflationary gap. b. Aggregate demand decreases, and the gap widens. c. Aggregate demand increases and the gap closes. d. None of the above
Torrie is thinking of starting up a small business selling hand-painted wine glasses. She is considering setting up her business as a corporation. What is one advantage to Torrie of setting up her business as a corporation?
A) By setting up the business as a corporation, Torrie would not face double taxation. B) By setting up the business as a corporation, Torrie would have the ability to share risk with shareholders. C) By setting up the business as a corporation, Torrie would have both ownership and control over the business. D) All of the above would be advantages of setting up her business as a corporation.
Cigarette advertising on our nation's radio and television stations has been prohibited for more than the past three decades by federal law
What is curious about this law is that it came into being not just because of the lobbying efforts of American Medical Association but also by the tobacco industry. Use economic logic to explain this apparent paradox.