Derrick owns and operates a bakery. Every Saturday he bakes a batch of fresh kolaches, and every Saturday he sells all the kolaches and has to turn some customers away. Which of the following statements is correct?
A. At the current price, quantity demanded exceeds quantity supplied.
B. The current price is higher than the equilibrium price.
C. If Derrick lowered the price of kolaches, the shortage would increase.
D. both a and c
E. all of the above
Answer: D
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Which of the following statements is true?
A) As the rental prices of downtown apartments rise, only workers with the lowest opportunity cost of time will be willing to rent them. B) As the rental prices of downtown apartments rise, only workers with the highest opportunity cost of time will be willing to rent them. C) Optimizers with the lowest opportunity cost of time push up the rental price of apartments with the lowest commute time. D) Optimizers with the highest opportunity cost of time push up the rental price of apartments with the highest commute time.
A construction project in Congressman Foghorn's district is unfinished. Foghorn has asked that a new appropriations bill include funds to complete the project, despite a report by an independent agency that the project is a waste of taxpayer money
Foghorn's project is a bridge that crosses a river between two cities in his district. The press has criticized Foghorn and dubbed the project "a bridge too far" since another bridge, located closer to the same two cities Foghorn's bridge will connect, already exists and can accommodate all traffic between the two cities. Foghorn argues that if the bridge project is not completed, the $50 million already spent will have been wasted. Is Foghorn's argument economically rational? Explain your answer.
The food and fiber industry today accounts for roughly what percent of GDP in the United States?
A) 8 to 11 percent B) 16 to 20 percent C) 12 to 15 percent D) 4 to 7 percent
The natural rate of unemployment is the amount of unemployment
A) associated with the business cycle. B) equal to frictional plus structural unemployment. C) that exists when the economy goes into recession. D) that exists when the economy is in an expansion.