When price level in the United States rises,
A. there is a increased demand for borrowed money.
B. producers' demand for new machinery increases, contributing to an increase in aggregate demand.
C. Americans tend to buy more foreign goods and services.
D. the French, Canadians, and Japanese would find our exports more attractive.
Answer: C
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Which of the following questions is a topic that would be studied by microeconomics?
A) Why did production and the number of jobs shrink in 2009? B) Will the current budget deficit affect the well-being of the next generation? C) How will a lower price of digital cameras affect the quantity of cameras sold? D) What is the current unemployment rate in the United States?
When marginal utility is positive and increasing, then
a. total utility must be negative. b. total utility must be increasing at an increasing rate. c. total utility must be increasing at a decreasing rate. d. total utility is decreasing. e. total utility is at its maximum point.
Exhibit 4-10 Supply and demand data for apricots Bushels demandedper month Price perbushel Bushels suppliedper month 50 $5 80 55 4 75 60 3 70 65 2 65 70 1 55 Which of the following would occur if the government set a price ceiling of $1 in the market shown in Exhibit 4-10?
A. There would be a shortage of apricots. B. Buyers would not want to purchase all of the apricots that are supplied. C. There would be a surplus of apricots. D. Farmers would reduce the number of acres allocated to the growing of apricots.
Redistribution of income from the rich to the poor is achieved from a tax system that requires taxes to rise with income. Which of the following criteria best explains the goal of this tax system?
A. stability B. growth C. efficiency D. equity