A decrease in demand coupled with a decrease in supply results in a(n)
a. increase in equilibrium price and a decrease in equilibrium quantity
b. decrease in equilibrium price and a decrease in equilibrium quantity
c. increase in equilibrium price and a increase in equilibrium quantity
d. ambiguous effect of equilibrium price and a decrease in equilibrium quantity
e. ambiguous effect on equilibrium price and a increase in equilibrium quantity
D
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Which of the following describes a positive externality?
A) The government imposes a tax on cigarettes in order to discourage smoking among teenagers. B) People who do not attend college still benefit from others who receive a college education. C) John Henry paints the outside of his house in order to increase its market value just before he puts the house up for sale. D) Mary volunteers to drive her neighbor's children to soccer practice.
If hiring the 4th worker increases total product by 50 units and the price of each unit is $15,
a. the firm should not hire the 4th worker as MB
Why is it possible that the economy will not self-correct out of a recessionary gap?
Compared to short-term bonds, other things the same, long-term bonds generally have
a. more risk and so they pay higher interest rates. b. less risk and so they pay lower interest rates. c. less risk and so they pay higher interest rates. d. about the same risk and so they pay about the same interest rate.