Suppose there is a permanent shift of consumer preferences away from pretzels and toward potato chips. The most likely result would be
A. in the short run, economic losses in the potato chip market.
B. in the short run, a rise in the price of pretzels.
C. in the long run, a fall in the supply of potato chips.
D. short-run profits in the potato chip market increase.
Answer: D
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According to the table above, the value of M1 is ________ and the value of M2 is ________
A) $813 billion; $2490 billion B) $805 billion; $2490 billion C) $813 billion; $3303 billion D) $1,488 billion; $3978 billion
Private goods are always provided by the private sector.
A. True B. False C. Uncertain
For most consumers, blu-ray players and blu-ray discs are likely to be:
A) substitute goods. B) complementary goods. C) inferior goods. D) independent goods.
In a competitive labor market, with one variable factor, the supply of labor to the firm is
A) equal to the marginal expenditure curve. B) equal to the demand curve for labor. C) greater than the marginal expenditure curve. D) equal to the marginal revenue product curve.