If the price of oil increases significantly, buyers and sellers of gasoline will both expect the price of gasoline to also increase. If sellers of gasoline act on their expectations more than the buyers do, then:
A. The equilibrium price of gasoline will increase while the equilibrium quantity will decrease
B. The equilibrium price of gasoline will increase while the equilibrium quantity will increase
C. The equilibrium price of gasoline will decrease while the equilibrium quantity will decrease
D. The equilibrium price of gasoline will decrease while the equilibrium quantity will increase
B. The equilibrium price of gasoline will increase while the equilibrium quantity will increase
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Which of the following is true with regard to economic growth? a. Small differences in economic growth rates make small differences in Real GDP over time
b. Once a country is richer than other countries, it will remain richer regardless of differences in economic growth rates. c. Economic growth rates tell us nothing about the distribution of output and income in a country. d. All of the above are true.
Binding price floors cause a surplus in the market
a. True b. False Indicate whether the statement is true or false
In the long run, assuming that the owner of a firm in a competitive industry has positive opportunity costs, she
a. should exit the industry unless her economic profits are positive. b. will earn zero accounting profits but positive economic profits. c. will earn zero economic profits but positive accounting profits. d. should ignore opportunity costs because they are a type of sunk cost that disappears in the long run.
Between 1968 and 2008 the poorest 60% of the population experienced a _______ in its percentage share of the nation's wealth.
A. substantial decrease B. small decrease C. small increase D. substantial increase