According to the textbook, demand and supply determine prices, and prices allocate scarce resources in the economy.
a. true
b. false
Answer: a. true
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When we put a price tag on goods and services, we are using money as a
A) store of value. B) medium of exchange. C) barter token. D) unit of account. E) means of payment.
The percentage of retired older workers has increased dramatically since the introduction of Social Security.
A. True B. False C. Uncertain
Under which of the following conditions would the interdiction of illegal drugs result in a decrease in the quantity of drugs sold and in a decrease in total spending on illegal drugs by drug users?
a. The interdiction has the effect of shifting the demand curve for illegal drugs to the right. b. The price elasticity of demand for illegal drugs is 1.3. c. The price elasticity of supply for illegal drugs is 0.8. d. As a result of the interdiction, the price of illegal drugs increases by 20 percent and the quantity of illegal drugs sold decreases by 16 percent.
Refer to the information provided in Table 33.2 below to answer the question(s) that follow.
Table 33.2
Refer to Table 33.2. The most that China will be willing to pay for a motorcycle is
A. 1/30 of a tractor. B. 1/20 of a tractor. C. 1/10 of a tractor. D. 1/5 of a tractor.