If the U.S. Surgeon General announced that increased grapefruit juice consumption could help prevent heart attacks, what would happen to the equilibrium price and quantity of grapefruit juice?
A) Price and quantity both increase.
B) Price and quantity both decrease.
C) Price increases but quantity decreases.
D) Price decreases but quantity increases.
A
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Keynesians argue that changes in wages will lag price level changes even if expectations are formed rationally because
A) workers have very little bargaining power compared with that of management. B) only a small percentage of workers are unionized. C) wages are often set by long-term contracts. D) workers often have incorrect information.
In a proportional tax system each individual would pay the same percentage of his or her income in taxes
a. True b. False Indicate whether the statement is true or false
All of the following companies export over one quarter of their production except
A. Oracle. B. Caterpillar Tractors. C. McDonalds. D. Boeing.
Refer to the graph shown that depicts a third-party payer market for prescription drugs. If the co-payment is $2 per pill, what will be the quantity demanded?
A. 15 B. 30 C. 60 D. 45