In 1984, the National Minimum Drinking Age Act was passed, raising the legal age to consume alcoholic beverages in the United States from 18 to 21
If the legal drinking age was changed back to 18, how would this affect the market for alcoholic beverages? What would happen to the equilibrium price and quantity of alcoholic beverages?
The demand for alcoholic beverages would increase, which would increase the equilibrium price and quantity.
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In a small town the local hardware store can charge higher prices than one in a large city with many hardware stores because the local hardware store
A. is privately owned. B. has fewer items to sell so they need to sell items for higher prices. C. has more market power in the small town. D. is motivated by profit while the other hardware stores are not.
An American traveling to Europe will find it easier to make purchases now because:
A. many of the countries in Europe now use the same currency, the euro. B. all of the countries in Europe now use the same currency, the euro. C. most countries in Europe accept U.S. dollars. D. most of the countries of Europe have adopted the British pounds as the standard currency.
Refer to Figure 11-1. In a diagram that shows the marginal product of labor on the vertical axis and labor on the horizontal axis, the marginal product curve
A) never intersects the horizontal axis. B) intersects the horizontal axis at a point corresponding to the 5th worker. C) intersects the horizontal axis at a point corresponding to the 6th worker. D) intersects the horizontal axis at a point corresponding to the 8th worker.
Refer to Figure 23-1. If the economy is at point L, what will happen?
A) Inventories have risen above their desired level, and firms decrease production. B) Inventories have risen above their desired level, and firms increase production. C) Inventories have fallen below their desired level, and firms increase production. D) Inventories have fallen below their desired level, and firms decrease production.