Consumers have the greatest incentive to lobby for price controls in the short run when supply is:
A. inelastic and demand decreases.
B. elastic and demand increases.
C. inelastic and demand increases
D. elastic and demand decreases.
Answer: C
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At the best affordable point, consumers equate their marginal rates of substitution to
A) their money income. B) their real income. C) relative prices. D) relative quantities.
Given the strict quantity theory of money, if the quantity of money doubled, prices would
a. fall by half. b. double. c. remain constant. d. increase somewhat but less than double.
The United States has benefited from NAFTA substantially in terms of increased ____, which has lowered prices and given consumers more choices.
a. prices b. variety c. manufacturing jobs d. quality
An individual who stores wealth in art rather than money will find that he/she:
A. has far more liquidity than most savers. B. suffers larger real losses during periods of high inflation. C. will incur higher transaction costs when he/she ultimately makes purchases. D. will have to resort to barter exchanging the art for desired goods.