The latest news report stated that the housing market is making a comeback and that house prices are on the rise. This information is likely to:
A. decrease demand for houses now due to a change in expectations of future prices.
B. have no effect on the current housing market, but will increase demand in the future.
C. increase demand for houses now due to a change in expectations of future prices.
D. have no effect on the current demand for housing, but will decrease current supply.
Answer: C
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The level of an economic activity should be increased to the point where the ____
a. Marginal cost=0 b. Marginal revenue=0 c. Total revenue = Total cost d. Marginal revenue – marginal cost=0
Barter system is less desirable than using money for exchange because: a. it is a more inefficient and a time-consuming process
b. gold and silver are risky and inconvenient to transport. c. it tends to promote inflation. d. gold and silver are relatively scarcer than other commodities.
We may see government supply social work internally rather than through private firms because
a. it is a public good b. it is difficult to monitor the quantity and quality of social work provided c. private firms would seek to cover their costs d. a government bureau would maximize its budget e. there is a great demand for such services
The production possibilities curve shows the different combinations of goods that can be produced with a set of given resources
Indicate whether the statement is true or false