When the demand for coffee increases, ceteris paribus, the equilibrium price will also increase because
A. A shortage exists at the old equilibrium price.
B. The market supply and demand curves do not intersect.
C. Market demand must be upward-sloping.
D. There must be a surplus of the good.
Answer: A
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If the government increased the income tax on the rich and increased transfer payments to the poor, the most likely result would be
a. to increase investment in the economy b. the eradication of poverty c. a rise in the Gini coefficient d. an increase in the economy's rate of economic growth e. a decline in the economy's rate of economic growth
The highest amount of output an economy can sustainably produce and sell using existing production processes and resources is called:
A. nominal output. B. potential output. C. actual output. D. utilized output.
Which of the following economists did not help to develop game theory analysis?
A) John Nash B) Adam Smith C) Oskar Morgenstern D) John von Neumann
Which of the following accounts for the largest percentage of output in the United States?
a. The government b. Business firms c. Households d. Banks e. The rest of the world