If sellers expect higher basket prices in the near future, the current
a. supply of baskets will increase.
b. supply of baskets will decrease.
c. supply of baskets will be unaffected.
d. demand for baskets will decrease.
b
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Explain why the average total cost curve and the average variable cost curve get closer to each other as output expands
What will be an ideal response?
Giffen goods
A) have not existed since prior to the Industrial Revolution. B) were proven to exist in the 1890s by Sir Robert Giffen. C) were not shown to actually exist until 2006. D) are theoretical and have never been discovered in the real world.
Suppose you withdraw $500 from your checking account deposit and bury it in a jar in your back yard. If the required reserve ratio is 10 percent, checking account deposits in the banking system as a whole could drop up to a maximum of
A) $0. B) $50. C) $500. D) $5,000.
If the demand curve and the supply curve for a good are straight lines, then the deadweight loss that results from a tariff is represented on the supply-and-demand graph by
a. the area of one triangle. b. the area of one rectangle. c. the combined areas of two different triangles. d. the combined areas of two different rectangles.