Suppose the four families listed in the table are the only demanders of Mt. Dew in the market. If the price of a case of Mt. Dew decreases by $1, the
a. market quantity demanded decreases by 10.
b. market quantity demanded increases by 10.
c. Adams family increases its quantity demanded by more than the Smith family.
d. Jones family increases its quantity demanded by more than the Williams family.
b. market quantity demanded increases by 10.
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For some investors, derivatives can be attractive financial assets to purchase because
A. these assets can be used to offset the possibility of another risk faced by the investor. B. these assets allow an investor to eliminate the risk that they face entirely. C. they provide high returns with a very small investment. D. they are easier to sell than common stock.
Which of the following is not an important question for economic policy raised by the experience of the textile industry?
a. How does international trade affect consumer well-being? b. Who gains and who loses from free trade among countries? c. How do the gains from trade compare to the losses? d. Which argument for restricting free trade is politically feasible?
Economic stagnation coupled with high inflation is commonly called:
A. stagflation. B. inflationary stagnation. C. stagnatory growth. D. inflagnation.
How does government's power to coerce behavior tend to reduce private-sector risk?
A. By enforcing contracts and discouraging illegal behavior that threatens private property. B. By guaranteeing that the government will financially cover any losses by private-sector firms. C. By strictly regulating the allocation of most property resources in the economy. D. The coercive power of government only increases private-sector risk.