The change in the quantity demanded of any good is always caused by:
a. a change in consumers' preferences for that good.
b. a change in the general income levels of the consumers who buy that good.
c. an increase or decrease in the population.
d. a change in the price of that good.
e. a change in the price of substitute goods.
d
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Suppose your economics professor has an extra copy of textbook that he or she would like to give to a student in the class. Which of the following schemes is the most likely to result in an efficient outcome?
A. Auctioning off the textbook to the highest bidder. B. Letting students take turns using the textbook. C. Giving the textbook to the student who has the lowest midterm score. D. Randomly selecting one student to receive the textbook.
Discrimination has no impact on the total output of goods and services
Indicate whether the statement is true or false
Table 36-1Suppose the economy of Macroland is described by the following:C = 200 + 0.8 DI (DI = disposable income)I = 300 + 0.2Y?50r (Y = GDP)(r, the interest rate, is measured in percentage points. For example, a 9 percent interest rate is r = 9).For this economy, assume that the Federal Reserve uses its monetary policy to peg the interest rate atr = 5G = 750T = 0.25YX = 200M = 150 + 0.2YHint: DI = Y?T From Table 36-1, find the trade deficit or surplus.
A. 475 deficit B. 75 deficit C. 75 surplus D. 475 surplus
Alyssa runs a "Dessert of the month" delivery service. To operate her business each year, she spends $30,000 on baking supplies (flour, sugar, etc.), $50,000 on rent for her shop, and $5,000 for utilities. She owns her delivery van, estimating that in alternate uses it could generate $15,000 in income per year. Alyssa has other funds tied up in the business that could earn her $2,000 per year in interest. Alyssa has been offered $50,000 to work full time at a competing bakery. Her bakery generates $160,000 per year in revenue from subscriptions to her monthly service.Based on the information above, which of the following is true about Alyssa's costs and profits?
A. Alyssa's implicit costs are $67,000 and her economic profits are $93,000. B. Alyssa's explicit costs are $85,000 and her accounting profits are $8,000. C. Alyssa's explicit costs are $67,000 and her implicit costs are $85,000. D. Alyssa's accounting profits are $75,000 and her economic profits are $8,000.