Consider the market for leather shoes. If producers believe the price of leather shoes will increase next month, today
A) the supply curve for leather shoes shifts rightward.
B) the supply curve for leather shoes shifts leftward.
C) there is a movement along the supply curve for leather shoes.
D) the equilibrium price of leather shoes falls.
E) the equilibrium quantity of leather shoes increases.
B
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When you accumulate more money,
A) the interest rate you are paid on your currency increases. B) the opportunity cost of holding money decreases. C) your marginal tax rate falls. D) the marginal benefit of holding money decreases. E) you earn a lower rate of interest on your checkable deposit.
If a government regulation states that fluorocarbon emissions should be abated by 75 percent but the optimal level of pollution abatement is 85 percent, which of the following must be true?
a. The free market will not reduce pollution by less than 85 percent. b. The free market will accomplish 85 percent abatement, but it will be inefficient. c. If only 75 percent of the pollution is abated, the society will be better off than if 85 percent had been abated. d. If only 75 percent of the pollution is abated, the society will be worse off than if 85 percent had been abated. e. If 75 percent of the pollution is abated, then in the next period the government should set the abatement level at 95 percent.
Which of the following is a similarity between an oligopoly and monopolistic competition? a. Both markets are characterized by mutually interdependent decision making. b. Both markets produce homogeneous products
c. Both markets are controlled by many dominant firms. d. Both markets have firms that compete for market share.
Use the above table. What percentage of income is received by the poorest 20% of the population?
A. 20 percent B. 7.0 percent C. 11.1 percent D. 13.3 percent