A new technology is announced which allows manufacturers to produce widgets for less. Widgets are a key input in the production of whatchamacallits. What would we expect to happen to the market for whatchamacallits?
A. The demand curve would shift left.
B. The supply curve would shift right.
C. The supply curve would shift left.
D. The demand curve would shift right.
Answer: B
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The most obvious benefit of specialization and trade is that they allow us to
a. work more hours per week than we otherwise would be able to work. b. consume more goods than we otherwise would be able to consume. c. spend more money on goods that are beneficial to society, and less money on goods that are harmful to society. d. consume more goods by forcing people in other countries to consume fewer goods.
Explain why the bid-ask spread on most municipal bonds would be greater than the spread on U.S. Treasury bonds.
What will be an ideal response?
Recall the Application about the economics professor who caught three students cheating on their final exam to answer the following question(s).Recall the Application. After being caught cheating, the economics professor called each student into his office individually. One student remarked "This feels like you put me in a prisoners' dilemma game." If this cheating episode resulted in the same way as the prisoners' dilemma, then:
A. none of the students would confess to cheating. B. only one student would confess to cheating. C. two of the students would confess to cheating. D. all three students would confess to cheating.
Suppose Spam is an inferior good. If the U.S. economy is growing strong, and demanders' incomes were to rise, which of the following would tend to occur?
A) Spam sales would increase. B) Spam demand would decrease. C) The price of Spam would increase. D) Both A and C above. E) Both B and C above.