An increase in the equilibrium quantity of good B can be caused by
A. a technological improvement in the process of producing good B.
B. an increase in the price of good B.
C. a reduction in the number of producers of good B.
D. an increase the price of inputs utilized in producing good B.
Answer: A
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When studying pollution and the environment, economists
A) have no role to play. B) concentrate on the physical aspects of the environment. C) emphasize costs and benefits. D) attempt to reduce pollution at all costs. E) think pollution is good if it occurs when production takes place.
Refer to the above diagram, which shows demand and supply conditions in the competitive market for product X. A shift in the demand curve from D0 to D1 might be caused by a(n):
A. increase in the price of substitute product Y. B. decrease in income if X is an inferior good. C. increase in the price of complementary good Y. D. increase in money incomes if X is a normal good.
Productivity fluctuates along a business cycle because
A. firms usually keep excess labor. B. workers tend to become less productive during expansions. C. workers tend to become more productive during expansions. D. Both B and C are correct.
Refer to the data provided in Table 17.6 below to answer the following question(s). The table shows the relationship between income and utility for Isabel.Table 17.6 IncomeTotal Utility $00 $40,00020 $80,00050$120,00090$160,000150Refer to Table 17.6. Suppose Isabel has a 25% chance of becoming disabled in any given year. If she does become disabled, she will earn $0. If Isabel does not become disabled, she will earn her usual salary of $160,000. Isabel has the opportunity to purchase disability insurance for $40,000 which will pay her her full salary in the event she becomes disabled. Isabel's utility with the policy is
A. 37.5 and her expected utility without the policy is 75. B. 90 and her expected utility without the policy is 37.5. C. 112.5 and her expected utility without the policy is 90. D. 90 and her expected utility without the policy is 112.5.