Sheila sells corn in a perfectly competitive market. This month Sheila receives a lower price for a bushel of corn than she did last month. This might have happened because:
A. the market demand increased for corn.
B. the market demand decreased for corn.
C. firms exited the market.
D. Sheila's costs have increased.
Answer: B
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A normal good is defined by economists to be a good
a. with a negatively-sloped demand curve. b. that is purchased by at least 75 percent of the population. c. that is bought by consumers with normal tastes. d. whose demand increases when incomes increase. e. whose demand decreases when incomes increase.
You would be inclined to bid on a good at an auction if
a. its MU/P was higher than those for other goods you consume b. its MU/P was lower than those for other goods you consume c. the consumer surplus was less than its price d. the consumer surplus was greater than the marginal utility from consuming the good e. the marginal utility was higher than its price
The three approaches to measuring GDP are called the
A) accounting approach, the income approach, and the expenditure approach. B) product approach, the cost approach, and the expenditure approach. C) product approach, the income approach, and the expenditure approach. D) accounting approach, the statistical approach, and the income approach.
Starting from long-run equilibrium, a large tax cut will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; higher B. expansionary; higher; potential C. recessionary; higher; potential D. recessionary; lower; lower