Uncertainty costs arise from inflation because inflation makes long-term planning ________ so people respond by ________ investment
A) less difficult; not changing
B) less difficult; increasing
C) more difficult; increasing
D) more difficult; decreasing
E) more difficult; not changing
D
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Aggregate expenditure is total
A. value added in the economy. B. income of households, businesses, governments, and foreigners. C. spending on final goods and services. D. revenue from the sale of goods and services.
According to the graph shown, if the market goes from equilibrium to having its price set at $10 then:
A. $12 gets transferred from consumer to producer in surplus.
B. $12 gets transferred from producer to consumer in surplus.
C. all consumer surplus lost is gained by producers.
D. all producer surplus lost is gained by consumers.
The marginal social cost of air quality increases as air quality increases. If the dirtiest production process would create 700 tons of pollutants, then
a. eliminating the first 20 tons of pollution is cheaper than eliminating the last 20 tons b. eliminating the last 20 tons of pollution is cheaper than eliminating the first 20 tons c. more damage will be done by the first 20 tons of pollution than by the last 20 tons d. more damage will be done by the last 20 tons of pollution than by the first 20 tons e. the optimal level of air quality is to reduce pollution by 700 tons
If a price floor is imposed above the equilibrium price in a market, what is the effect?
a. There is no visible effect on the market outcome. b. A shortage results. c. A surplus results. d. The quantity supplied will decrease