In a free-market system, producers will react to an increase in demand when
A. the price goes up.
B. the government announces the increased demand.
C. their costs increase.
D. the free press publishes news of the increased demand.
Answer: A
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Consider two scenarios for a nation's economic growth. Scenario A has real GDP growing at an average annual rate of 2%; scenario B has an average annual growth of 4%. The nation's real GDP would double in about
A. 36 years under scenario A, versus 18 years under scenario B. B. 36 years under scenario A, versus 9 years under scenario B. C. 18 years under scenario A, versus 9 years under scenario B. D. 25 years under scenario A, versus 12.5 years under scenario B.
If the government set a price ceiling at $8
A. there would be a temporary surplus, then prices would fall to equilibrium.
B. there would be a permanent surplus, at least until the price floor was lifted.
C. the price would fall back to the equilibrium price.
D. the price floor would not have any effect on this market.
In economics, one of the problems with the concept of “need” is that it ignores ______.
a. opportunity b. efficiency c. scarcity d. security
A(n) ________ in human capital ________ the productivity of labor.
A. increase; has no impact on B. increase; increases C. decrease; has no impact on D. decrease; increases