Relative to the prices that would be observed in an uncontrolled market, prices charged in a black market are generally
A. lower, since sellers have trouble locating buyers.
B. lower, since buyers have trouble locating sellers.
C. higher, since black market sellers compensate for the risk of being caught.
D. higher, since most buyers enjoy goods more if they are illegal.
Answer: C
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Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting downward C. Aggregate demand shifting rightward D. Aggregate demand shifting leftward
The combined effect on the loanable funds market of a new technology that increases the marginal physical product of capital and a shift in consumers' preferences for more present consumption is
a. an increase in the interest rate b. a decrease in the interest rate c. unclear because each of the effects has an opposite influence on the interest rate d. an increase in the quantity of loanable funds demanded and supplied on the market e. a decrease in the quantity of loanable funds demanded and supplied on the market
The demand for education is determined by the
a. demand for human capital. b. demand for nonhuman capital. c. supply of human capital. d. supply of nonhuman capital.
Barbara owns a small shop where dresses are made. At the end of a given month, she has 250 dresses. Her expenses for the month are $1,000 for rent, $6,000 for wages, $1,500 for fabric and thread, and $500 for electricity. Her total variable costs for the month are:
A. $8,000. B. $4,000. C. $32 per dress. D. $7,500.