Suppose the demand for Tesla cars decreases and the supply of Teslas increases. What effect will it have on the equilibrium price for Tesla cars?
a. There will be no change
b. Uncertain
c. It will fall
d. It will rise
Answer: c. It will fall
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What are the advantages of vertical integration?
A drop in consumption or investment spending caused by increased government spending is referred to as:
a. the multiplier effect. b. an expansionary gap. c. Ricardian equivalence. d. the paradox of thrift. e. crowding out.
The accumulation of investments in people, such as education and on-the-job training, is known as
a. physical capital. b. human capital. c. efficiency wage. d. compensating differentials.
Bobby's neighbor is growing a tree that is blocking Bobby's ocean view. Bobby is considering taking his neighbor to court. This is most likely an example of a:
A. negative externality. B. public good. C. free rider. D. positive externality.