Tom was out shopping for a sweater and learned that they will all go on sale tomorrow. We would expect Tom's demand for sweaters today to:
A. shift to the right.
B. increase.
C. move down along his demand curve.
D. shift to the left.
Answer: D
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Could pollution be eliminated by banning all activities harmful to the environment?
A) No, because legislation is influenced by industrial lobbyists. B) No, because the cost of doing so would be higher than even the most dedicated environmentalist would agree to accept. C) Not until we have better information on the sources of pollution. D) Yes, if we are willing to place long-run considerations ahead of short-run profits.
The free rider problem is triggered when a good is ______________, and the tragedy of the commons arises when a good is ________________
A. nonexcludable; both rivalrous and nonexcludable. B. rivalrous; both rivalrous and nonexcludable. C. both rivalrous and nonexcludable; rivalrous. D. both rivalrous and nonexcludable; excludable.
The GDP deflator: a. includes fewer goods and services than the CPI
b. generally rises substantially faster than the CPI during inflationary conditions. c. ignores investment goods and goods produced by the government. d. is the broadest generally reported measure of inflation.
When the housing bubble popped, the effect of the negative demand side shock and the negative supply side shock were the same on:
A. output, causing it to definitely decrease. B. prices, causing them to definitely rise. C. output, causing it to definitely increase. D. prices, causing them to definitely fall.