Assume the demand for sugar decreases and the supply of sugar increases. Which of the following outcomes is certain to occur?
A. The equilibrium price of sugar will rise.
B. The equilibrium quantity of sugar will rise.
C. The equilibrium quantity of sugar will fall.
D. The equilibrium price of sugar will fall.
Answer: D
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Some economists object to having the Fed concentrate solely on price stability because it would
A) make stabilizing the economy more difficult. B) lessen its credibility. C) privatize the Federal Reserve. D) free the Fed from political pressure.
Net utility is
A. equal to total utility from the quantity acquired of a good minus the utility lost by having to pay for it. B. equal to the sum of the marginal utilities. C. equal to an optimal number easily calculated by the consumer. D. always greater than total utility.
Refer to Figure 18-1. Suppose that the U.S. government deficit causes interest rates in the United States to rise relative to those in the European Union. Assuming all else remains constant, how would this be represented?
A) Supply would decrease, demand would decrease and the economy moves from B to C to D. B) Supply would increase, demand would decrease and the economy moves from C to B to A. C) Demand would decrease and the economy moves from B to A. D) Demand would increase and the economy moves from A to B.
Which of the following about Social Security is true?
a. The regressive nature of the Social Security benefit formula works to the advantage of groups with below average earnings. b. Groups with an below average life expectancy gain from Social Security because they will typically draw retirement benefits over a more lengthy period of time. c. The life expectancy of Hispanics at age 20 is generally lower than the figures for whites and blacks. d. Hispanics derive a higher return from their Social Security taxes than whites, and substantially higher than blacks.