The fact that the price of a gallon of milk is likely to be more expensive at a convenience store than at a supermarket is an example of:

A. normative economics.
B. market forces.
C. political forces.
D. social forces.


Answer: B

Economics

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In 2004, Jamal lost his job as a shipbuilder. His shipyard never reopened, and his very specialized skills as a shipbuilder were no longer in demand. Jamal's unemployment is best classified as _____

a. cyclical b. structural c. seasonal d. frictional e. voluntary

Economics

The government can _______________ change an inefficient market outcome (in the case where there is a negative externality) into an efficient outcome by imposing a tax on the activity that generates the negative externality

A) in almost all situations B) possibly C) not D) in all situations E) a or d

Economics

If foreigners decide to increase their investments in the U.S., this will cause

a. an appreciation of the dollar and foreign goods to become cheaper b. a depreciation of the dollar and U.S. goods to become cheaper c. a favorable balance of trade and an appreciation of the dollar d. a devaluation of the dollar and a favorable balance of trade e. a surplus in the current account

Economics

Suppose Ann can produce 8 units of a material good (M) or 4 units of a spiritual good (S) in a day, while Ben can produce only 3 Ms or 3 Ss in a day. Both Ben and Ann can potentially produce a larger combination of M and S if

A) Ann produces both M and S and Ben produces neither. B) Ann specializes in M and Ben specializes in S and neither of them trade. C) Ann specializes in S and Ben specializes in M and they exchange with one another. D) Ann specializes in M and Ben specializes in S and they exchange with one another.

Economics