When supply increases and at the same time demand decreases, we
A. can predict that both equilibrium price and quantity will decrease.
B. cannot predict equilibrium quantity, but know that equilibrium price will decrease.
C. can predict that both equilibrium price and quantity will increase.
D. cannot predict the change in either the equilibrium quantity or equilibrium price.
Answer: B
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In order to improve living standards for future generations, the economy must
a. sacrifice consumer goods today. b. reduce its investment goods. c. increase government spending. d. reduce growth in the population.
A tax loophole is
A. an illegal method by which individuals or corporations avoid paying the taxes they legally owe. B. a provision in the tax code that allows individuals or corporations to reduce their tax burdens legally by meeting certain conditions. C. a tax surcharge on incomes within certain ranges. D. a provision in the tax code that allows individuals or corporations to shift the economic incidence of a particular tax on to someone else.
Specialization in production
A. Makes a country weak. B. Reduces the standard of living. C. Increases output. D. Decreases total world output.
Refer to the given data. Which of the following would be feasible terms of trade between Landia and Scandia?
Answer the question on the basis of the following production possibilities data for Landia and Scandia:
A. 1 fish for 4 chips.
B. 1 fish for 6 chips.
C. 1 fish for 7 chips.
D. 2 fish for 4 chips.