Picture a competitive market with the usual upsloping supply curve and downsloping demand curve. If the current price is creating a shortage, then market forces will cause the price to adjust and:
A. Quantity supplied will increase
B. Quantity supplied will decrease
C. Quantity demanded will increase
D. Demand will decrease
Answer: A
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Immigration can either benefit or harm a nation, depending on the following factors, except the:
A. Number of immigrants B. Education, skills, and work ethic of the immigrants C. Rate at which the immigrants can be absorbed by the society D. Blank
Which of the following is not a criticism of the national defense argument for trade restrictions?
a. National defense only makes sense in the absence of international trade. b. Stockpiling basic military hardware could eliminate the need to protect the domestic industry. c. Nearly all industries can make some claim to strategic importance, so such trade restrictions can get out of hand. d. National defense considerations can outweigh concerns about efficiency. e. Government subsidies to domestic producers may be more efficient than trade restrictions.
The value of the marginal product of labor is equal to the change in
a. marginal cost caused by the addition of the last worker. b. total cost caused by the addition of the last worker. c. total revenue caused by the addition of the last worker. d. total profit caused by the addition of the last worker.
Which of the following is likeliest to have decreased at point D?
a. disposable income
b. household assets
c. household spending
d. the tax rate