Suppose there is a tornado that levels a city. As rebuilding begins, how might you analyze this effect in the market for lumber?
A. The demand for lumber would increase, increasing both the equilibrium price and quantity.
B. The supply of lumber would increase, decreasing the equilibrium price and increasing the equilibrium quantity.
C. The demand for lumber would increase, decreasing the equilibrium price and increasing the equilibrium quantity.
D. The supply of lumber would decrease, increasing the equilibrium price and decreasing the equilibrium quantity.
A. The demand for lumber would increase, increasing both the equilibrium price and quantity.
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The above figure shows Katie's consumption possibilities. The relative price of a movie ticket is
A) 1 restaurant meal. B) 0.25 restaurant meals. C) 4 restaurant meals. D) 2 restaurant meals.
According to the Taylor rule, the Fed should raise the federal funds interest rate when inflation ________ the Fed's inflation target or when real GDP ________ the Fed's output target
A) rises above; drops below B) drops below; drops below C) rises above; rises above D) drops below; rises above
Other things remaining constant, higher trade deficits in the U.S. will lead to: a. U.S citizens buying greater foreign securities
b. an increase in domestic savings in the U.S. c. a decrease in the demand for U.S. dollars. d. an increase in funds from abroad. e. an increase in the standard of living of the U.S residents.
________ is an example of a public good.
A. A medical service B. An automobile C. A restaurant meal D. National defense