If average income increases, ceteris paribus, then there will be:
a. A movement along and a shift in the demand curve
b. A shift of the demand curve.
c. No effect on the demand curve, because income is not a ceteris paribus condition
d. A movement along the demand curve
b. A shift of the demand curve.
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The Business Cycle has three main parts, which of these is not one of them?
a. Expansion b. Recession c. Inflation d. Recovery
In order to shift the current production possibilities curve outward, an economy
A. Must use more of the existing resources. B. Will never be able to produce a combination of goods and services outside the current production possibilities curve. C. Can raise the prices of goods and services to encourage firms to produce more. D. Must find additional resources or better technology.
In 1984, the National Minimum Drinking Age Act was passed, raising the legal age to consume alcoholic beverages in the United States to 21. In much of Europe, the legal age to consume alcohol is 18. If the legal drinking age in the United States was
changed back to 18, how would this affect the market for alcoholic beverages? What would happen to the equilibrium price and quantity of alcoholic beverages? What will be an ideal response?
Two companies, Dirty Inc. and Filthy Inc., each of which has access to 5 different production processes, each of which has a different cost and produces a different amount of pollution. The daily costs of the processes and the number of tons of smoke emitted are shown in the table below. Process(smoke/day) A(4 tons/day) B(3 tons/day) C(2 tons/day) D(1 ton/day) E(0 tons/day) Cost to Dirty Inc. ($/day) $110$200$380$740$1,460 Cost to Filthy Inc. ($/day) $400$430$490$580 $700If pollution is unregulated, then a total of ________ tons of smoke will be emitted each day.
A. 4 B. 2 C. 1 D. 8