If a farmer buys one-hundred more acres for her flower farm, she is making a
A. short-run decision.
B. long-run decision.
C. immediate-run decision.
D. variable-input decision.
Answer: B
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Which of the following increases the supply of gasoline?
A) a situation where the quantity of gasoline demanded exceeds the quantity supplied B) an increase in the price of gasoline C) a decrease in the price of a resource used to produce gasoline, such as crude oil D) a decrease in the demand for gas-guzzling, sport utility vehicles E) an increase in income if gas-guzzling, sport utility vehicles are a normal good
Suppose that a small economy that had previously been closed becomes open. If its real interest rate had previously been below the world real interest rate, we would expect that
A) the country's real interest rate would remain below the world level. B) the country would become a net lender abroad. C) the country would become a new borrower abroad. D) the amount of loanable funds supplied in the country would decline.
When a shortage of a good is present due to a price ceiling,
a. the amount supplied will be greater than the amount demanded. b. the quality of the good will generally improve. c. non-price factors, such as discrimination or waiting in line, will play a greater role in the allocation of the good. d. the demand for the product will increase and, thereby, eliminate the shortage.
If your income goes down, you will probably purchase fewer goods and services.
a. true b. false