Were the price of gasoline to permanently increase by 10% overnight and stay there for the foreseeable future. Other things constant,
A) the demand for gasoline would fall immediately.
B) the quantity demanded for gasoline would fall immediately.
C) the quantity demanded for gasoline would fall more dramatically over time
D) the quantity demanded for gasoline would remain unchanged, because cars can only be run on gasoline.
C
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If the economy is producing at point B, the opportunity cost of gaining 12 units of consumer goods is _______ units of capital goods.
If the opportunity cost of producing a T-shirt is ________ in China than in the United States, China has ________ advantage in producing T-shirts
A) lower; a comparative B) lower; an absolute C) higher; a comparative D) higher; an absolute E) higher; no
In the case where money demand is completely interest insensitive (interest elasticity equals zero), an increase in the quantity of money will
a. increase income but leave the interest rate unchanged. b. increase income and lower the interest rate. c. lower the interest rate but leave income unchanged. d. leave both income and the interest rate unchanged.
In the above figure, the farmer faces a trade-off between beans and wheat equal to
A) one-to-one. B) three-to-one. C) one-to-two. D) one-to-four.