Recall the Application. If the decrease in price of illegal drugs is primarily due to a change in supply, the equilibrium quantity of drugs
A) will increase. B) will decrease.
C) will not change. D) may or may not change.
A
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Under a gold standard in which one dollar could be turned in to the U.S
Treasury and exchanged for 1/20th of an ounce of gold and one German mark could be exchanged for 1/100th of an ounce of gold, an exchange rate of ________ marks to the dollar would stimulate a flow of gold from the United States to Germany. A) 7 B) 6 C) 5 D) 4
Refer to Figure 4.3. All else equal, a decrease in the desire of households to consume today accompanied by an increase in corporate taxes would cause which of the following shifts?
A) S1 to S2 and D1 to D2 B) S2 to S1 and D1 to D2 C) S1 to S2 and D2 to D1 D) S2 to S1 and D2 to D1
An empty core is more likely if the individuals in a group own highly complementary resources
Indicate whether the statement is true or false
The Phillips curve shows the trade-off between rates of inflation and rates of unemployment
Indicate whether the statement is true or false