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The price of good B has a pattern such that P = $20 on Monday through Thursday of
every week, and P = $25 on Fridays.If speculators begin participating in the market for
good B, their actions will likely lead to a(n) ______________ in the price of good B on
Monday through Thursday and a(n) _______________ in the price of good B on Friday.
a. increase; increase
b. increase; decrease
c. decrease; increase
d. decrease; decrease
Exhibit 2-8
For Maya, the opportunity cost of producing one unit of good X is ___________ unit(s)
of good Y.
a. 2.00
b. 1.00
c. 10.00
d. 0.50
The Friedman natural rate theory holds that there is an inverse relationship between
inflation and unemployment in the long run, but not in the short run.
a. True
b. False
Exhibit 4-8
Suppose that wheat producerslobby the government for a price floor and receive
one.This price floor is set at PF.What is the size of the producers' surplus at PF?
a. area 2 + 3 + 4 + 5
b. area 2 + 3
c. area 4
d. area 6
In agriculture during much of the 20th century, supply grew more than demand. Which
two farm problems are these?
a. the high-productivity problem and the income elasticity problem
b. the low-productivity problem and the income inelasticity problem
c. the high-productivity problem and the income inelasticity problem
d. the low-productivity problem and the income elasticity problem
e. none of the above
Exhibit 5-5
If the airline charges price P1 for both aisle seats and middle seats, the result will be
a. a surplus of middle seats and the equilibrium quantity of aisle seats.
b. a surplus of aisle seats and the equilibrium quantity of middle seats.
c. a shortage of middle seats and the equilibrium quantity of aisle seats.
d. a shortage of aisle seats and the equilibrium quantity of middle seats.
Exhibit 39-4
At a target price of $4 per bushel, how much does the private sector spend on wheat?
a. $2,400
b. $1,800
c. $2,800
d. $3,600
Which of the following is not true about production possibilities frontiers?
a. moving from one point to another on a PPF incurs a tradeoff
b. economic growth is shown by shifting the PPF outward
c. unemployment of resources is shown by shifting the PPF inward
d. a PPF can shift inward or outward
A federal budget surplus occurs when government expenditures exceed tax revenues.
a. True
b. False
Farmers can insure themselves against adverse price swings through the __________
market.
a. bond
b. stock
c. futures
d. food
e. none of the above
