Suppose that only one curve shifts. If you observe that the equilibrium price and equilibrium quantity decreased, then the market experienced a(n):
A. decrease in supply.
B. increase in demand
C. increase in supply.
D. decrease in demand.
Answer: D
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Which of the following is an example of a positive economic statement?
A) The unemployment rate last month was 5.4 percent. B) The unemployment rate last month was too high. C) Because of the high unemployment rate last month the government should increase government spending. D) The unemployment rate should be measured differently because it doesn't include students who can't find jobs.
Economist Jeffrey Sachs' big push theory involves:
A. giving a one-time large amount of aid upfront, ending the need for future aid. B. developed nations concertedly pushing developing nations into following certain beneficial policies. C. a concerted effort in many areas to break the poverty trap. D. developed nations pushing away less developed nations as trading partners because in general less developed nations cannot offer any benefits to developed nations.
A technological improvement in the production of good X causes the:
A. demand curve for X to shift to the right. B. demand curve for X to shift to the left. C. supply curve for X to shift to the right. D. supply curve for X to shift to the left.
The graph below represents the market for alfalfa. The equilibrium price is $7.00 per bushel, but the market price is $9.00 per bushel. Identify the areas representing consumer surplus, producer surplus, and deadweight loss at the equilibrium price of
$7.00 and at the market price of $9.00. What will be an ideal response?