Which of the following is true when the price of a good or service rises?
a. Buyers who were already buying the good or service are better off.
b. Some buyers exit the market.
c. The total consumer surplus in the market increases.
d. The total value of purchases before and after the price change is the same.
b
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(Consider This) The U.S. recession that occurred in 2008 and 2009 represented a case where:
A. government policy intervention effectively offset the negative demand shock and minimized the effects on output and employment. B. prices were somewhat flexible, so the impact of the demand shock was felt about the same in terms of price and output changes. C. prices were relatively flexible, minimizing the impact on total output and employment. D. prices were relatively sticky and most of the impact was on total output.
The above table shows production combinations on a country's production possibilities frontier. Which of the following points signifies efficient production?
A) 0 units of good X and 40 units of good Y B) 3 units of good X and 25 units of good Y C) 10 units of good X and 16 units of good Y D) 12 units of good X and 1 unit of good Y
When total utility is at its maximum what must be the value of marginal utility?
What will be an ideal response?
Which of the following would not be considered an internal force that helps move the economy out of a trough?
a. the replacement of worn-out capital b. higher interest rates c. the replacement of depleted inventories d. costs falling lower than prices