If the U.S. government starts to sell off its stockpile of cheese,
A. consumers will be less willing to purchase cheese.
B. the equilibrium quantity demanded will rise.
C. farmers will hoard the cheese they produce.
D. the quantity of cheese that spoils before sale will rise.
Answer: B
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a. Every bidder know the value of the object being sold b. Each bidder makes the same estimate of the value of the good c. Bidders do not know the estimates of the others d. The true value of the item differs across bidders
If demand is more elastic, the portion of an excise tax borne by a buyer will
a. increase. b. decrease. c. be unchanged. d. increase for normal goods, decrease for inferior goods.
Suppose a perfectly competitive firm faces the following short-run cost and revenue conditions: ATC = $700; AVC = $500; MC = $600; MR = $600. The firm should
A) increase output. B) decrease output. C) continue to produce its current output. D) shut down.
If a society is producing at a point along its production possibility frontier, then the society
A. is underallocating resources so it must be inefficient. B. is fully employing its resources so it must be achieving output efficiency. C. is fully employing its resources, but not necessarily achieving output efficiency. D. is overallocating resources so efficiency is indeterminate.