If both the demand for a product and the supply of it increase, then the equilibrium quantity will ________ and the equilibrium price will ________.
A) decrease; increase
B) decrease; decrease
C) decrease; remain constant
D) increase; either increase, decrease, or remain constant
Answer: D) increase; either increase, decrease, or remain constant
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Julie works part-time for economic reasons. She would be considered
A) an involuntary part-time worker. B) a discouraged worker. C) a job seeker. D) not in the labor force. E) unemployed as calculated by the Bureau of Labor statistics.
The purpose of antitrust policy is to promote competition, which leads to lower prices.
a. True b. False
Most economists believe that there are positive externalities in education. One can conclude that a free market would fail to give the socially optimal outcome because in comparison to the socially optimal (efficient) equilibrium, the inefficient equilibrium
A. price and quantity would be too high. B. price would be too low and quantity would be too high. C. price and quantity would be too low. D. price would be too high and quantity would be too low.
On July 21st, 2005, the Chinese government changed the value of the yuan from 8.28 yuan per U.S. dollar to 8.11 yuan per U.S. dollar. One effect of this change should have been
A. an increase in the dollar price of Chinese goods. B. market pressure to return the rate to 8.28 yuan per dollar. C. an increase in the prices of American goods in the Chinese market. D. a decline in the average price level in the United States