When attempting to correct cases of "market failure," economists usually seek policies that maximize
A. producer surplus, not consumer surplus.
B. consumer surplus, not producer surplus.
C. the sum of consumer and producer surplus.
D. the difference between consumer and producer surplus.
Answer: C
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Assume the demand schedule for cookies is downward sloping. If the price of cookies falls from $1.50 to $1.25 per dozen,
a. the demand for cookies will fall. b. the demand for cookies will rise. c. a larger quantity of cookies will be demanded. d. a smaller quantity of cookies will be demanded.
Which of the following factors is most likely to cause the aggregate demand curve to shift rightward?
a. An increase in savings b. An increase in household wealth c. An increase in tax rates d. A decrease in government spending
The Industrial Revolution refers to the period 1950–1970, which was characterized by rapid manufacturing-sector growth in the United States.
Answer the following statement true (T) or false (F)
The relationship between quantity supplied and price is _____ and the relationship between quantity demanded and price is _____
A. direct; inverse B. inverse; direct C. inverse; inverse D. direct; direct