If the demand curve is horizontal and the supply curve is vertical, shifts of the supply curve will lead to
A) changes in the equilibrium quantity only.
B) changes in the equilibrium price only.
C) changes in both the equilibrium price and quantity.
D) changes in the quantity demanded only.
A
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A decrease in the demand for labor will ________ real wages and ________ employment
A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease
The idea that a large public debt is "mortgaging the future of our children and grandchildren" is misleading because
a. it is the Federal Reserve that will be responsible for making interest payments on the debt. b. future generations will have to bear the opportunity costs of the resources that are used today. c. future generations will not be liable for the interest obligations of the national debt. d. future generations will inherit the interest income as well as the interest obligations.
Which of the following statements applies to economics, as well as to other sciences such as physics?
a. Experiments are considered valid only when they are conducted in a laboratory. b. Good theories do not need to be tested. c. Real-world observations often lead to theories. d. Economics, as well as other sciences, is concerned primarily with abstract concepts.
Give an example that shows price elasticity of supply. Avoid using examples from the text.
What will be an ideal response?