In the short run, it is necessary to ________ a good whenever excess demand exists.
A. price allocate
B. nonprice ration
C. discontinue distribution of
D. increase production of
Answer: B
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Moe has a big exam tomorrow. He considered studying this evening, but decided to hang out with Curly instead. If neither activity involves any explicit costs, and Moe always chooses rationally, then it must be true that:
A. Moe gets less benefit from spending time with Curly than from studying. B. the opportunity cost of studying is greater than the value Moe gets from spending time with Curly. C. Moe gets more benefit from spending time with Curly than from studying. D. the opportunity cost of studying is less than the value Moe gets from spending time with Curly.
In a two-nation world, comparative advantage in the production of a particular product means that one nation can produce
A. the product at a lower domestic opportunity cost than the other nation. B. more of the product than the other nation. C. the product with fewer inputs than the other nation. D. the product at lower average cost than the other nation.
The cost of producing cigarettes in the United States has increased and at the same time, more and more Americans are choosing to not smoke cigarettes. Which of the following best explains the effect of these events in the cigarette market?
A) Both the supply and demand curves have shifted to the left. As a result, there has been a decrease in the equilibrium quantity and an uncertain effect on the equilibrium price. B) Both the supply and demand curves have shifted to the right. As a result, there has been an increase in the equilibrium quantity and an uncertain effect on the equilibrium price. C) The supply curve has shifted to the right and the demand curve has shifted to the left. As a result there has been an increase in the equilibrium quantity and an uncertain effect on the equilibrium price. D) The supply curve has shifted to the right and the demand curve has shifted to the left. As a result, there has been an increase in the equilibrium price and an uncertain effect on the equilibrium quantity.
The cycle of increased market demand that leads to ________ and then a(n) ________ in the market supply curve has caused many firms bankruptcy.
A) underexpansion; decrease B) underexpansion; increase C) overexpansion; decrease D) overexpansion; increase