When the market for gasoline in Motorland is in equilibrium, the market price of gasoline is ________ the marginal social cost
A) $1.50 above
B) $1.50 below
C) equal to
D) $1.20 above
B
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A consumer has a monthly income of $100 that he wants to spend on two goods: rugs priced at $10 and chairs priced at $5
What is the consumer's opportunity cost of buying a rug? What is his opportunity cost of buying a chair? Use a table to represent the consumer's budget constraint.
The questions of what goods to produce, how to produce them, and for whom to produce them are of concern only in advanced industrial economies.
a. true b. false
When the U.S. dollar appreciates,
A. U.S. exports rise. B. U.S. imports decline. C. aggregate demand shifts inward. D. aggregate demand shifts outward.
Suppose Congress increased spending by $100 billion and raised taxes by $100 billion to keep the budget balanced. What will happen to real equilibrium GDP?
A) Real equilibrium GDP will fall. B) Real equilibrium GDP will rise. C) There will be no change in real equilibrium GDP. D) Real equilibrium GDP will initially rise, but then fall below its previous equilibrium value.