If the price of a good has risen over time,
a. it must have become more scarce.
b. it must have become less scarce.
c. it has become more scarce only if the price adjusted for inflation has risen.
d. it has become less scarce only if the price adjusted for inflation has risen.
c
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Use the following table, which lists output quantities and prices for the only three goods in the economy, to answer the next question. The base year is 2007.YearHot DogsBaseballsBottles of Beer?PriceQuantityPriceQuantityPriceQuantity2005$2.50100$2.5050$1.0010020064.001005.001002.0015020075.001005.001002.0020020088.001508.002004.00200200910.0020010.002004.00250The Consumer Price Index for the year 2005 is
A. 150. B. 100. C. 50. D. 200.
A bilateral monopoly exists when there is a
A) single buyer and many sellers in the market. B) single seller and many buyers in the market. C) large number of buyers and sellers in the market. D) single buyer and a single seller in the market.
Answer the following statements true (T) or false (F)
1. Inventory depletion can lead to increased production. 2. During the expansion phase of the business cycle, profit margins increase due to a widening cost-price relationship. 3. Population growth and wars are examples of external forces affecting the economy’s cyclical movements. 4. As the economy moves into the trough of the business cycle, there is a sizable reduction in the output of capital goods. 5. The roughly coincident indicators have their upward and downward turning points prior to the upward and downward turning points of real GDP.
If consumption is $340 and saving is $20, then disposable income
A. Is $320. B. Is $360. C. Is $340. D. Cannot be determined from the information given.