Refer to the above graph. If the current market price is $60 and user costs are not considered, the extraction quantity is:
Use the following graph to answer question. It shows the extraction costs for TX Oil Company
in the first year in a situation where it will extract oil from a reserve over two years.
A. 10 units
B. 20 units
C. 30 units
D. 40 units
C. 30 units
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Prices of commercial airline tickets (assume that this is a normal good) have fallen in recent months. Over this same period, the price of jet fuel has risen and consumer incomes have fallen
Which of the following best explains the falling prices of airline tickets? A) The supply curve for airline tickets has shifted to the left while the demand curve for airline tickets has shifted to the right. B) The demand curve for airline tickets has shifted to the left more than the supply curve has shifted to the left. C) The supply curve for airline tickets has shifted to the left more than the demand curve has shifted to the left. D) The demand curve and the supply curve for airline tickets have both shifted to the right.
The ratio of the increase in equilibrium real GDP to the increase in autonomous expenditure is called the
A) MPC. B) consumption function. C) MPS. D) multiplier.
If the federal government borrows from the private sector to pay for increased budget deficits and interest rates increase, this will cause
A) a decrease in planned investment and planned consumption. B) an increase in planned investment and planned consumption. C) a decrease in planned investment and an increase in planned consumption. D) an increase in planned investment and a decrease in planned consumption.
If the government removes a binding price floor from a market, then the price paid by buyers will
a. increase, and the quantity sold in the market will increase. b. increase, and the quantity sold in the market will decrease. c. decrease, and the quantity sold in the market will increase. d. decrease, and the quantity sold in the market will decrease.