An increase in input costs in the production of electric automobiles caused the price of electric automobiles to rise
Holding everything else constant, how would this affect the market for gasoline-powered automobiles (a substitute for electric automobiles)?
A) The supply of gasoline-powered automobiles would increase and the equilibrium price of gasoline-powered automobiles would decrease.
B) The demand for gasoline-powered automobiles would increase and the equilibrium price of gasoline-powered automobiles would increase.
C) The demand for gasoline-powered automobiles would increase and the equilibrium price of gasoline-powered automobiles would decrease.
D) The demand for gasoline-powered automobiles would decrease because consumers could afford to buy fewer gasoline-powered automobiles.
B
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The market system works by getting each person, motivated by his or her own self-interest, to produce products for other people
Indicate whether the statement is true or false
Suppose the price of an airline ticket from Dallas to Boston costs $600 . A bus ticket costs $150 . Traveling by plane takes 6 hours compared with 51 hours by bus. Other things constant, an individual would gain by choosing air travel if, and only if, his time were valued at more than
a. $6 per hour. b. $8 per hour. c. $10 per hour. d. $15 per hour.
If the marginal benefits of increasing study time are less than the marginal costs, then
A. study time should be decreased. B. no conclusion about the relative merits of more or less study time is possible. C. there is too little study time. D. study time should be increased. E. study time should be decreased to zero.
Members of the Board of Governors of the Fed are
A. elected to two-year terms by the Electoral College. B. appointed by the president for four-year terms and confirmed by the Congress. C. appointed by the president for 14-year terms and confirmed by the Senate. D. appointed by the president for 14-year terms and confirmed by the Supreme Court.