A competitive market is in equilibrium. Bagels and cream cheese are complementary goods. Suppose that the price for flour, which is used to produce bagels, increases. The equilibrium price of cream cheese ________, and the equilibrium quantity of cream cheese ________.

Which of the following is most important for the achievement of higher income levels and living standards?

What will be an ideal response?

A small country imports T-shirts. With free trade at a world price of $10, domestic production is 10 million T-shirts and domestic consumption is 42 million T-shirts. The country's government now decides to impose a quota to limit T-shirt imports to 20 million per year. With the import quota in place, the domestic price rises to $12 per T-shirt and domestic production rises to 15 million T-shirts per year. If the government auctions the import licenses, the national well-being will ________ by

A. decrease; $12 million. B. decrease; $5 million. C. increase; $65 million. D. increase; $40 million.

The rate of economic growth is a topic of microeconomics.

Answer the following statement true (T) or false (F)

A business buys $5,000 worth of inputs from other firms in order to produce a product. The business makes 100 units of the product and each of them sells for $65. The value added by 25-46 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. the business to these products is:

A.  $5,000 B.  $6,500 C.  $1,500 D.  $1,000