If the number of firms producing mouthwash increases and consumer preference for mouthwash increases, the equilibrium price of mouthwash will definitely increase
Indicate whether the statement is true or false
FALSE
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Suppose losses cause industry Z to contract, and as a result, the prices of inputs used intensively in the industry's production process fall. We know, as a result, that industry Z is: a. an increasing cost industry
b. a constant cost industry. c. a decreasing cost industry. d. experiencing diminishing returns.
John Maynard Keynes referred to economics as an easy subject,
a. at which very few excel. b. but not as easy as philosophy or the pure sciences. c. which very few can enjoy. d. which deals primarily with common sense.
Answer the following statements true (T) or false (F)
1. In a well-functioning "cap-and-trade system" for pollution rights, society benefits because pollution will be brought down to insignificant levels. 2. In a well-functioning cap-and-trade system for pollution rights, the right to pollute will go to those who are able to acquire the largest net benefit from using the scarce resource "clean air". 3. Asymmetric information occurs when the two parties in a market transaction do not have the same amount of information regarding the product or process involved in the transaction. 4. The licensing and regulation of financial advisers is one way by which the government tries to deal with the problem of inadequate information that financial firms about their customers.
The 2007-2009 recession began with reductions in investment and consumption spending, precipitated by a financial crisis. This explanation for the recession is consistent with:
A. the monetarist view of macroeconomic instability. B. the rational expectations view of macroeconomic instability. C. the mainstream view of macroeconomic instability. D. none of these views of macroeconomic instability.