Refer to Table 3-3. The table above shows the demand schedules for Kona coffee of two individuals (Luke and Ravi) and the rest of the market. If the price of Kona coffee falls from $6 to $4, the market quantity demanded would
A) increase by 61 lbs. B) increase by 110 lbs.
C) increase by 26 lbs. D) decrease by 89 lbs.
A
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Suppose there are only two goods: guns and roses. In Los Angeles, the absolute price of roses is 50 dollars per dozen. If the relative price of roses in terms of guns is 1 guns per dozen roses, then the absolute price of guns is
a. 5 dollars per gun. b. 2 cents per gun. c. 50 dollars per gun. d. 50 cents per gun.
To find aggregate planned expenditures, which of the following must be added to consumption expenditure?
i. net exports ii. investment iii. government expenditure on goods and services A) i only B) ii only C) iii only D) i and ii E) i, ii, and iii
Which of the following is a positive economic statement?
a. Too much government spending is the biggest problem facing the U.S. economy. b. Creating jobs is the most serious problem facing the U.S. economy. c. Raising taxes provides additional revenue that should be used to finance health care. d. If taxes are over 50 percent of national income, job creation falls.
Research around the world indicates that the underground economy grows more widely when:
a. tax rates decrease b. government regulations increase c. government corruption is on the decline d. all of the above make the underground economy grow