The U.S. Federal government is unlikely to default on its bonds because:
A. The bonds are all long term bonds and they are insured
B. The Federal government has the ability to collect taxes and to sell securities to the Fed
C. Foreigners are willing to buy the Federal government bonds and lend to the U.S. government
D. The Federal government can always borrow from the states and from businesses
B. The Federal government has the ability to collect taxes and to sell securities to the Fed
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Which of the following is an example of excess supply:
A. Price = $500, demand = 500, supply = 300 B. Price = $700, demand = 300, supply = 500 C. Price = $600, demand = 400, supply = 400 D. Price = $400, demand = 600, supply = 200
How does the introduction of cognition into a consumer's choice between healthy and unhealthy food affect marginal utility per dollar and the quantity of healthy and unhealthy food consumed? Assume utility is maximized.
What will be an ideal response?
Figure 9.2 shows the cost structure of a firm in a perfectly competitive market. Suppose the current market price is $6 and the firm produces at a given output level. If the firm's total fixed cost increases due to a new government regulation, the short-run response of the firm should be to:(Note: since the question does not restrict the firm's response to the short run, we can't rule out that the rise in fixed cost will push the firm below the breakeven point and that the firm will exit the industry in the long run, thus decreasing its current output level.)
A. produce its current output level. B. decrease its current output level. C. increase its current output level. D. There isn't sufficient information.
Related to the Economics in Practice on page 203: Licenses to sell hot dogs in New York City's Central Park are considerably higher than the licenses to sell hot dogs in the rest of the city. Which of the following statements regarding the above information is true?
A. Despite this, hot dogs are less expensive in New York's Central Park than in the rest of the city. B. Due to this, hot dogs are more expensive in New York's Central Park than in the rest of the city. C. Despite this, hot dogs sell for the same price in New York's Central Park as they do in the rest of the city because the hot dog market is perfectly competitive. D. Despite this, hot dogs sell for the same price in New York's Central Park as they do in the rest of the city because the city regulates the price of hot dogs.