Farmers can choose to produce eggs or milk. If there is an increase in the price of milk then what will be the effect in the egg market?
A. The quantity of eggs demanded will increase.
B. Egg demand will decrease.
C. Egg supply will increase.
D. Egg supply will decrease.
Answer: D
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If the interest rate rises from 1 percent to 3 percent, the ________ decreases and the opportunity cost of holding money ________
A) demand for money; rises B) quantity of money demanded; rises C) quantity of money supplied; rises D) quantity of money demanded; falls E) quantity of money supplied; falls
Technical and "junior" colleges offering full-time degree programs that may be completed in two years or less are a rapidly growing segment of the U.S. economy. What are some likely impacts on aggregate flows into and out of employment status?
What will be an ideal response?
The above figure shows the market for apples. If the government restricts output to no more than 300 pounds, then
A) 300 pounds of apples will be sold at $3. B) 200 pounds of apples will be sold at $3. C) no apples will be sold. D) None of the above.
The incidence of a tax:
A. falls entirely on consumers if supply is perfectly inelastic. B. falls entirely on consumers if demand is perfectly elastic. C. is shared by suppliers and consumers if demand is perfectly elastic. D. falls entirely on suppliers if demand is perfectly elastic.