Refer to the data. If price was initially $4 and free to fluctuate, we would expect the:
Answer the question on the basis of the given supply and demand data for wheat:
A. quantity supplied to continue to exceed the quantity demanded.
B. quantity of wheat supplied to decline as a result of the subsequent price change.
C. quantity of wheat demanded to fall as a result of the subsequent price change.
D. price of wheat to rise.
B. quantity of wheat supplied to decline as a result of the subsequent price change.
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The bulk of federal budget receipts come from ______
a. individual income taxes b. social insurance revenues c. corporation income taxes d. excise taxes
Economists refer to the relationship that a higher price leads to a lower quantity demanded as the _____________.
a. income gap b. market equilibrium c. law of demand d. price model
Which of the following statements reflect sound economic reasoning?
a. Foreign competition will reduce the wealth of Americans. b. If it is more economical to acquire a good through trade than by self-production, it makes sense to trade for it. c. If domestic production of a good will employ lots of people, the good should be produced domestically. d. Higher tariffs will increase the total volume of international trade.
Economies of scale refers to when:
A. average total cost does not depend on the quantity of output in the long run. B. an increase in the quantity of output increases average total cost in the long run. C. an increase in the quantity of output decreases average total cost in the long run. D. None of these is true.