Refer to Figure 9-1. Suppose the government allows imports of leather footwear into the United States. What will the market price be?
A) $10 B) $18 C) $24 D) >$24
B
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The cost of basics like milk, bread, potatoes and bananas has jumped in the past year, forcing families to nix luxuries, steer away from organic goods and buy more house brands
"I think it's affecting everybody," said Elize Joseph 48, a nursing attendant. "To spend $40 on groceries is nothing. It doesn't go a long way." When food prices increase, what will happen to Elize's total utility? A) It increases. B) It stays the same. C) It decreases. D) It cannot be determined without knowing her total income.
The money demand curve will shift to the right if:
A. ATM machines are introduced. B. the price level decreases. C. real income increases. D. the nominal interest rate increases.
Which of the following is a transfer payment?I.Social SecurityII.Unemployment benefits
A. I only B. II only C. Both I and II D. Neither I nor II
To prevent obesity, the government may establish a tax on high caloric foods, such as twinkies. A twinkie tax will have the smallest impact on quantity demanded when the demand curve for twinkies is
A) perfectly elastic. B) perfectly inelastic. C) more elastic than the supply curve. D) both A and B.