Which of the following is the most likely effect of lower apple juice prices on the price and quantity purchased of orange juice, a substitute product?
A. The price of orange juice will increase, and the quantity purchased will fall.
B. The price of orange juice will fall, and the quantity purchased will increase.
C. The price of orange juice will increase, and the quantity purchased will increase.
D. The price of orange juice will fall, and the quantity purchased will fall.
Answer: D
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Government's use of eminent domain is a solution to
A) the problem of negative externalities. B) potential monopolization of a market. C) the holdout problem. D) the free-rider problem.
Refer to the accompanying figure. If Pat and Chris each spend half their time on each task, then:
A. they will plant more bulbs and remove fewer bags of trash than if they had each specialized in the task at which they have a comparative advantage. B. the outcome will be efficient. C. the outcome will be unattainable. D. they will plant fewer bulbs and remove fewer bags of trash than if they each had specialized in the task at which they have a comparative advantage.
Which of the following schools of economic thought would be against balancing the budget during a recession?
A. The classical school B. Keynesians C. Monetarists D. Supply side economics