In Figure 8-1, point E represents:
a. recession and a peak.
b. peak and a trough.
c. recovery and a peak.
d. recession and a trough.
Ans: d. recession and a trough.
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An increase in price is likely to affect demand in what way?
A. Demand will increase. B. Demand will decrease. C. Demand will not change. D. This would only affect supply and not demand.
Which of the following will likely occur when price floors in agriculture are implemented?
A) Quantity supplied will exceed quantity demanded. B) Quantity demanded will exceed quantity supplied. C) Farmland will be underutilized. D) Supply will decrease.
The opportunity cost of purchasing an item is
a. the number of hours needed to earn money to buy it. b. the next best thing you could have done with the time and money spent. c. always less than the dollar value of the item. d. always equal to the dollar value of the item. e. just the time required to buy it.
Having more money and a bigger house than other people is the key to happiness. Which economic approach is most consistent with this idea?
A. Engineering B. Behavioral C. Traditional D. Keynesian