When supply and demand for a product decrease simultaneously, we
A. can predict that both equilibrium price and quantity will increase.
B. cannot predict the change in either the equilibrium quantity or equilibrium price.
C. can predict that both equilibrium price and quantity will decrease.
D. cannot predict equilibrium price, but know that equilibrium quantity will decrease.
Answer: D
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Common property ownership most likely leads to
A) an efficient allocation of resources. B) production at a rate at which price is less than social cost. C) a decrease of externalities. D) an increase in pollution.
Nontradables are cited as a reason why purchasing power parity doesn't hold because:
A. goods that you can't transport cannot be sold for a profit elsewhere, even if the price differs in different locations. B. there is no economic opportunity to profit if the goods cannot be sold in another market for another price. C. location-specific goods are impossible to calculate a price elsewhere for. D. All of these statements are true.
Government expenditures are larger than government outlays
a. True b. False
A country that runs a trade surplus increases current consumption at the expense of future consumption.
Answer the following statement true (T) or false (F)