A headline reads "Lumber Prices Up Sharply." In a competitive market, this situation would lead to a(n):
a. Increase in the price of new homes and decrease in quantity
b. Decrease in the price of new homes and increase in quantity
c. Decrease in the price and quantity of new homes
d. Increase in the price and quantity of new homes
a. Increase in the price of new homes and decrease in quantity
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The equilibrium purchase price of an acre of land depends upon the current value of the marginal product of land and upon the __________
Fill in the blank(s) with correct word
Which of the following is an accurate statement about the effect of close substitutes?
a. Goods with many close substitutes will usually have elastic demands. b. Goods with many close substitutes will usually have inelastic demands. c. Goods with few close substitutes will usually have perfectly elastic demands. d. Goods with few close substitutes will usually have perfectly inelastic demands.
In the treatment of U.S. exports and imports, national income accountants:
A. add exports, but subtract imports, in calculating GDP. B. subtract both exports and imports in calculating GDP. C. add both exports and imports in calculating GDP. D. subtract exports, but add imports, in calculating GDP.
Which of the following would decrease the unemployment rate?
A) an increase in the minimum wage B) an increase in the efficiency wage C) an increase in labor union membership D) government aid to retrain unemployed workers