Suppose that in most car collisions between cars of unequal size, the smaller car sustains the most damage and its occupants suffer the most injury. In answering the following question, assume that, on average, smaller cars generate less air pollution than larger cars and that every person in the economy drives at least one car. Suppose the size of all cars increased by 25 percent. Collisions between two cars would cause ________ and air pollution would ________.
A. greater injury; increase
B. neither greater nor less injury; increase
C. less injury; increase
D. neither greater nor less injury; remain the same
Answer: B
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Which of the following industries was not deregulated during the 1970s and 1980s?
a. airline industry b. auto industry c. banking industry d. trucking industry
When economists say goods are scarce, they mean
a. consumers are too poor to afford the goods and services available. b. consumers are unwilling to buy goods unless they have very low prices. c. goods are generally freely available from nature in most countries. d. the desire for goods and services exceeds our ability to produce them with the limited resources available.
If the supply of tennis balls, a complement to tennis racquets, decreases, what will happen to the equilibrium price of tennis balls and to the equilibrium price of tennis racquets?
Part of the normal aftermath of a period of excessive aggregate demand is
A. improvement in the quality of life. B. reflation. C. real GDP growth. D. stagflation. E. All of these responses are correct.