Suppose demand increases and supply decreases. Which of the following will happen?
a. The change in equilibrium price and quantity cannot be determined.
b. Equilibrium price will rise, fall, or stay the same while equilibrium quantity will increase.
c. Equilibrium price will rise, fall, or stay the same while equilibrium quantity will decrease.
d. Equilibrium quantity will rise, fall, or stay the same while equilibrium price will decrease.
e. Equilibrium quantity will rise, fall, or stay the same and equilibrium price will increase.
e. Equilibrium quantity will rise, fall, or stay the same and equilibrium price will increase.
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Refer to Table 19-27. What is the level of disposable personal income for this economy?
A) $1,080 billion B) $1,010 billion C) $980 billion D) $860 billion
Which is the best example of specialization?
A) a high school math teacher who teaches only calculus B) a firm that produces both luggage and cooking oil C) a person whose job includes accounting, personnel, and maintenance tasks D) a high school math teacher who teaches algebra and calculus
New York City Police recommended steps the bank could take to deter robberies, including the installation of plastic barriers called “bandit barriers.” The police were surprised the bank did not take their advice. According to a deputy commissioner of police, “Commerce does very little of what we recommend. They’ve told our detectives they have no interest in ever putting in the barriers.” It would seem that Commerce Bank would have a strong incentive to install “bandit barriers” to deter robberies. Why wouldn’t they do it?
a. The banks probably resent any interference from the police department. b. The banks are concerned that “bandit barriers” would send the wrong message to customers—that the bank is unsafe. c. The banks must have weighed the cost of installing bandit barriers against the bene ts and decided that they have “no interest in ever putting in the barriers.” d. The banks would rather delay the installation of any theft deterring equipment in anticipation of new lower-cost innovations in the security devices market.
Refer to the above graph. Which of the lines in the above diagram represent(s) a progressive tax?
A. Both A and B B. B only C. C only D. D only