During 2007-2008, the price of gasoline increased from approximately $1.50 to $4.00 per gallon. As a result, the
What will be an ideal response?
demand for gas guzzling automobiles, such as the Hummer, decreased, causing their price to decline.
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In the above, which figure(s) show(s) a relationship between the variables that is always negative?
A) Figure A only B) Figure D only C) Figures A and C D) Figures A, C, and D E) Figure B only
Which of the following situations probably would not yield a negative externality?
A. a rock concert in the quad next to the library B. one person who is smoking cigarettes in a closed room where several other people are present C. a tutor quietly instructs a student in economics as a bystander willingly listens in without the tutor knowing it D. mowing your lawn early on a Saturday morning when you live in a densely populated neighborhood E. All of the above situations would yield negative externalities.
The demand for Ben & Jerry's ice cream is _________________ than is the demand for all ice cream because _______________.
A. less price elastic; the scope of the market for Ben & Jerry's is less broadly defined B. more price elastic; the scope of the market for Ben & Jerry's is less broadly defined C. less price elastic; Ben & Jerry's has fewer available substitutes D. more price elastic; Ben & Jerry's has fewer available substitutes
A decrease in real GDP would affect the U.S. economy by:
a. cutting tax revenues and raising government expenditures. b. cutting government expenditures and raising tax revenues. c. raising both tax revenues and government expenditures. d. cutting both government expenditures and tax revenues.