What will happen to the equilibrium price and quantity of cars if there is an increase in the price of gasoline?
What will be an ideal response?
An increase in the price of gasoline will cause a left shift in the demand for cars, keeping supply unchanged. With supply unchanged and a left shift in the demand for cars, both the equilibrium price and quantity of cars will decrease.
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Which factor of production is paid "profit"?
A) entrepreneurship B) human capital C) labor D) land E) capital
In general, the marginal cost of avoiding an accident ________ as more actions are taken and the associated marginal cost curve is ________ sloping.
A) falls; upward B) rises; downward C) falls; downward D) rises; upward
"Unions in the United States have helped raise the incomes of union workers as compared to nonunion workers." Do you agree or disagree? Why?
What will be an ideal response?
Which of the following is an example of entrepreneurship?
A) a student who produces and sells t-shirts at a football game B) all of the above C) an employee who figures out how to make her services more valuable to the business for which she works D) a 15-year old who operates a lemonade stand during hot summer days