Suppose that goods X and Y are substitutes and the price of good Y falls. We would then expect
A. the quantity of good Y demanded to increase and the demand for good X to increase also.
B. an increase in the demand for good X and a decrease in the quantity of good Y demanded.
C. an increase in the demand for both good X and good Y.
D. an increase in the quantity demanded of good Y and a decrease in the demand for good X.
Answer: D
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The above figure shows the market for DVDs. The government decides that all citizens deserve to watch affordable DVDs so a price ceiling of $12 per DVD is placed on DVDs
After this price ceiling is in effect and taking account of the resources lost in search, consumer surplus equals ________. A) $900,000 B) $400,000 C) $200,000 D) $180,000 E) $100,000
Refer to the above table. If the price of the good produced is $8, the marginal revenue product of the 12th worker is
A) $720 B) $800 C) $5520 D) $560
We interpret the meaning of "loanable funds" as the
a. flow of resources available from private saving. b. flow of resources available to fund private investment. c. resources borrowed by private investors and by government. d. resources lent by private investors and by government.
If Germany can make compact cars more efficiently than Russia, it enjoys
A. a comparative advantage. B. an absolute advantage. C. no advantage.