If the supply curve and the demand curve both shift to the left, then the new equilibrium:
A. price will be lower, but the direction of the change in quantity is uncertain.
B. quantity will be higher, but the direction of the price change is uncertain.
C. quantity will be lower, but the direction of the price change is uncertain.
D. price will be higher, but the direction of the change in quantity is uncertain.
Answer: C
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The main disadvantage to organizing a business as a proprietorship is
A) its complex management structure. B) limited liability. C) unlimited liability. D) that economic profit cannot be maximized.
The demand for DVDs increases. As a result
A) the wage rate in the DVD industry increases and the quantity demanded of workers increases. B) the wage rate in the DVD industry increases and the quantity supplied of workers increases. C) the demand for labor increases and the supply of labor also increases, leaving wages unchanged. D) the demand for labor increases, but since the supply curve of labor is perfectly elastic, the wage rate does not change.
Cost-push inflation happens when technological innovation unexpectedly lowers the cost of production, causing increased demand for goods and services
a. True b. False Indicate whether the statement is true or false
How do taxes and government cash transfer payments alter the measured distribution of income?
a. Taxes, because they are included in the official data on income distribution, are reflected in the data, but cash transfer payments, which redistribute income to lower income households, are not included. b. Cash transfer payments are included in the official data on income distribution, but taxes are not. c. Both taxes and cash transfer payments are included in the official data on income distribution d. Neither taxes or cash transfer payments are included in the official data on income distribution