If people expect the price of shorts to rise next month, the demand for shorts will
a. decrease now.
b. increase now.
c. stay the same now and increase next month.
d. stay the same now and decrease next month.
e. stay the same now and next month.
B
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According to the textbook, which of the following methods for coordinating the supplies and demands for scarce goods tends to work best to enhance the freedom and power of people who want the goods?
A) A lottery B) Equal shares for all C) First come, first served D) Highest money bid E) Might makes right
The best economic theory is the one
a. whose assumptions most closely match reality b. that yields the most accurate predictions c. that most simply represents reality d. that most closely matches the conscious behavior of economic decision makers e. that includes the most details
Your economics professor has announced that he or she will assign final grades as follows: the top 20 percent of students will get an A, the bottom 20 percent of students will get an F, and everyone else will get a C. You would expect that, as the semester progresses, students who really care about getting an A will:
A. study less and less to maintain low standards. B. try to forget about the grading scheme. C. maintain a stable agreement to not study for exams. D. engage in a positional arms race, studying more and more.
Innovations that lower production costs or create new products:
A. are rare in competitive industries.
B. discourage new firms from entering the industry.
C. often generate short-run economic profits that do not last into the long run.
D. usually generate long-run economic profits for the innovator.