When supply shifts to the left, it would make the surplus from a price floor smaller, other things equal
a. True
b. False
Indicate whether the statement is true or false
True
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Which of the following statements is not true about a market system?
a. The market system provides an incentive to consumers to acquire purchasing ability. b. The market system magnifies the problem of scarcity of goods and services. c. The market system provides an incentive for allocating resources. d. The market system provides an incentive to improve the quality of goods produced. e. The market system provides everything everyone wants to consume.
A pack of cigarettes costs $6. At the age of 16, some people start smoking one pack per day or 365 packs a year. Assume there is no increase in the future price of cigarettes. How much retirement wealth are these people sacrificing if they smoke until reaching the age of 66?
A) $2,190 (=$6 * 365 days). B) $ 109,500 (=$2,190 * 50 years). C) $6. D) $109,500 plus the compound interest income that could have been earned on the funds over the 50 years.
There are outputs for which ________ costs exceed ________ costs in the short run.
A) total fixed; total B) average variable; average total C) total variable; total D) average total; average variable
Which of the following would, other things equal, reduce the demand for U.S. farm products?
A. Poorer crops abroad. B. Strong economic growth abroad. C. Improved trade relations with China and Russia. D. Appreciation of the U.S. dollar.