Assume that supply increases slightly and demand increases greatly. Which of the following will happen?
a. Equilibrium price will fall and equilibrium quantity will rise.
b. Equilibrium price will rise and equilibrium quantity will fall.
c. Equilibrium price will rise and equilibrium quantity will rise.
d. Equilibrium price will fall and equilibrium quantity will fall.
e. Neither equilibrium price nor equilibrium quantity will change.
C
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A differential commodity tax is the same as an excise tax.
A. True B. False C. Uncertain
Which of the following is NOT studied in microeconomics?
A) the effect of an increase in gasoline taxes on the purchase of gasoline B) the impact of an increase in the unemployment rate on economic production C) the impact of firms' collective hiring choices on the aggregate unemployment rate D) the impact of higher fuel prices on the cost of airline tickets
What did the gravity equation predict about trade within the borders of a nation?
a. Trade between states or regions within a nation is much more likely than trade outside the borders. b. Trade between states or regions within a nation is much less likely to occur. c. There was no predictive value for trade within a nation's borders. d. Trade between states or regions within a nation is more subject to national law and regulation and therefore not as predictable.
A philosophy based on the belief that democratic means should be used to distribute wealth evenly throughout a society
a. free enterprise b. traditional economy c. incentive d. safety net e. socialism