In 2010, a British Petroleum oil rig exploded in the Gulf of Mexico. The explosion resulted in a major oil spill and a decrease in the supply of oil. At the same time, the average price of gasoline decreased
Which of the following best explains the decrease in the price of gasoline? A) The quantity demanded of gasoline increased.
B) The demand for gasoline decreased, and the effect of the decrease in demand on the gasoline price was greater than the price effect of the decrease in supply.
C) The demand for gasoline increased, and the effect of the increase in demand on the gasoline price was less than the price effect of the decrease in supply.
D) The demand for gasoline remained unchanged.
B
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In the United States the poorest 20 percent of households receive about ________ of total income
A) 1 percent B) 4 percent C) 10 percent D) 15 percent
In August 2008, Ethan Nicholas developed the iShoot application for the Apple iPhone 3G, and within five months had earned $800,000 from this program. By May 2009, Nicholas had dropped the price from $4.99 to $1.99 in an attempt to maintain sales
This example indicates that in a competitive market A) earning an economic profit in the long run is extremely easy. B) economic profits are only earned in the long run. C) earning an economic profit in the long run is extremely difficult. D) it is impossible to earn an economic profit in either the short run or the long run.
The government purchases multiplier will be larger if the marginal income tax rate decreases
Indicate whether the statement is true or false
Suppose the Christmas trees market is perfectly competitive. A business owner is currently suffering from a loss of $1,000, the cost of producing and selling an additional Christmas tree is $20, and the current market price is $25. The owner
A) should sell more trees. B) should shut down his business now. C) should advertise in the market. D) is already minimizing his loss.