If the price of paint increases, the substitution effect will cause
a. people to paint their homes more often
b. people to use more paint than they did before
c. the quantity of paint demanded to increase
d. the quantity of paint supplied to decrease
e. people to use less paint
E
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A government policy deemed to be "temporary" indicates:
A) only long-run expectations are unchanged. B) only expected exchange rates are unchanged. C) only prices are not flexible in the short run. D) there are sticky prices, fixed expected exchange rates, and constant long-run expectations.
Over time, the equilibrium price of a gigabyte of computer memory has fallen while the equilibrium quantity purchased has increased. Based on this we can conclude that:
A. decreases in the demand for computer memory have exceeded increases in supply. B. decreases in the supply of computer memory have exceeded increases in demand. C. increases in the demand for computer memory have exceeded increases in supply. D. increases in the supply of computer memory have exceeded increases in demand.
?19742015Minimum wage per hour$ 2.00$ 7.25Weekly income from minimum wage$80.00$290.00Cost of a standard basket of goods$47.00$236Number of baskets per week1.701.23
Use Table 2.5 above to answer the question. The nominal value of the minimum wage in 2015 was:
A. $2.00 per hour. B. $3.63 per hour. C. $5.62 per hour. D. $7.25 per hour.
Suppose a shortage for good X exists. Given this information, we know that
A. a government price floor should be imposed above the current price so that the market can work more effectively. B. a government price ceiling should be imposed above the current price so that the market can work more effectively. C. the price of good X will tend to rise toward the equilibrium level. D. the price of good X will tend to fall toward the equilibrium level.