If tastes for a good decreased and the price of a substitute good increased at the same time, as a result:
a. prices would rise
b. prices would fall.
c. larger quantities to be exchanged.
d. we would not know which direction either prices or quantities exchanged would be altered without more information.
d
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Which of the following is NOT a normative economic statement?
A) States should reduce the tax on heating fuel oil during the winter. B) The price of gasoline is too high. C) People over the age of 75 should not be allowed to drive cars. D) Teenagers are responsible for most driving fatalities. E) We don't spend enough money on anti-smoking campaigns.
Economists use the term "potential output" to refer to ________
A) a level of output that has not yet been achieved B) the maximum level of output of which an economy is capable C) the sum of finished goods plus goods in production that will be finished within the year D) the level of output that occurs when all prices are fully adjusted E) none of the above
The decision about whether to use tax or spending mechanisms to implement expansionary fiscal policy is, in part, a ________________ decision rather than a purely economic one.
a. individual b. political c. local d. state
An oligopoly is an industry market structure with
A. a single firm in which the entry of new firms is blocked. B. a small number of firms each large enough to impact the market price of its output. C. many firms each able to differentiate their product. D. many firms each too small to impact the market price.