If the expected future price of oil falls, then
A. the equilibrium price and quantity will not change.
B. the current equilibrium price will fall, and the current equilibrium quantity will fall.
C. the current equilibrium price and quantity will both fall.
D. the equilibrium price will fall, but the change in the equilibrium quantity will depend on whether the demand change outweighs the supply change.
Answer: D
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National defense made up the largest portion of federal expenditures in 2009.
Answer the following statement true (T) or false (F)
A large open economy's real interest rate will decrease if
A) the expected future marginal product of domestic capital rises. B) the expected future marginal product of foreign capital rises. C) there is a temporary positive domestic supply shock. D) there is a temporary negative domestic supply shock.
Secure property rights promote economic progress because they
a. encourage individuals to produce efficiently and undertake productive activities. b. weaken the incentive to take actions that increase the value of resources. c. transfer the costs of a decline in property value to the government. d. discourage property owners from engaging in activities that provide value to others.
If you can produce more of something than others with the same resources, you have
A) a free-market economy.
B) an absolute advantage.
C) an efficient production system.
D) a comparative advantage