The economy in the period 1950 to 1998 behaved differently than the economy in the 1870 to 1940 time period. Economists explain this difference
A. in part because of the use of stabilization policy.
B. because of increases in U.S. population due to the “baby boom.”
C. in part because of the globalization of the economy.
D. in part because of the use of competition policy.
Answer: A
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Assume that the market for cell phones comprises two buyers and two sellers. The following table shows the demand and supply of cell phones at different prices. Using the information in the table, determine the market equilibrium price and quantity
Price ($) Cell Phones Demanded (Buyer 1 ) Cell Phones Demanded (Buyer 2 ) 10 100 80 20 80 65 30 75 50 40 60 45 50 30 30 60 20 22 Price ($) Cell Phones Supplied (Seller 1 ) Cell Phones Supplied (Seller 2 ) 10 10 25 20 30 40 30 50 45 40 55 50 50 65 60 60 75 70
Tanesha sells homemade candles over the Internet. Her annual revenue is $64,000 per year, the explicit costs of her business are $17,000, and the opportunity costs of her business are $22,000. What is her economic profit?
A) $17,000 B) $25,000 C) $42,000 D) $47,000
During the post-bellum period, growth in demand outpaced growth in supply, causing food prices to fall
Indicate whether the statement is true or false
Why does perfect competition guarantee a Pareto optimal distribution of goods between two people? Under perfect competition,
A) everyone has the same preferences. B) everyone faces the same prices. C) everyone consumes the same quantity of both goods. D) goods are homogeneous.