A safety report is released that contends that sport utility vehicles are less prone to roll over during crashes than was previously thought. At the same time, the price of steel (used to produce motor vehicles) decreases. The net effect of these two incidents on the market for sport utility vehicles is a(n):
a. indeterminate change in price and an increase in equilibrium quantity.
b
indeterminate change in price and a decrease in equilibrium quantity.
c. decrease in price and an increase in equilibrium quantity.
d. increase in price and an increase in equilibrium quantity.
a
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To achieve long-run equilibrium in an economy with a recessionary gap, without the use of stabilization policy, the inflation rate must:
A. not change. B. increase. C. decrease. D. either increase or decrease depending on the relative shifts of AD and AS.
About how many malnourished children under age five are there in the developing world?
a. 20 million b. 150 million c. 500 million d. 1 billion e. 2 billion
Applying the analysis from the California test scores to another U.S. state is an example of looking for
A) simultaneous causality bias. B) external validity. C) sample selection bias. D) internal validity.
Which of the following mergers would result from the purchase of a retail clothing chain by a computer software company?
a. A horizontal merger. b. A vertical merger. c. A conglomerate merger. d. A monopoly merger.