Refer to Figure 4-4. The figure above represents the market for iced tea. Assume that this is a competitive market. If the price of iced tea is $1, what changes in the market would result in an economically efficient output?
A) The price would increase, the demand would increase, and the supply would decrease.
B) The quantity supplied would increase, the quantity demanded would decrease, and the equilibrium price would increase.
C) The price would increase, the quantity supplied would increase, and the quantity demanded would decrease.
D) The price would increase, quantity demanded would increase, and quantity supplied would decrease.
C
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Which of the following statements is true?
A) Arithmetic or geometric growth rates gives similar answers for long periods. B) Using either arithmetic or geometric average to compute average growth rates gives similar answers for short periods. C) Geometric average of growth rate ignores the exponential nature of growth. D) Arithmetic calculation of growth rate considers the exponential nature of growth.
The most important function of money is to
A) allow for positive interest rates. B) enable people to measure their own personal worth. C) facilitate the collection of taxes. D) encourage greed among people. E) serve as a medium of exchange.
The Federal Constitution, like the laws under English rule, permitted the U.S. government to
(a) impose taxes to pay for government services and national defense. (b) regulate commerce with other countries. (c) create money and regulate its value. (d) do all of the above.
Today, U.S. government spending on entitlements represents ________ of the total federal budget
A) about 10 percent B) less than 25 percent C) nearly 60 percent D) nearly 90 percent