If the price of rubber (an input to the production of tires) increases:
A. the supply of tires will decrease.
B. the supply of tires will increase.
C. the demand for tires will decrease.
D. the demand for tires will increase.
Answer: A
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The table above has the domestic demand and domestic supply schedules for a good. If the world price of the good is $10 and international trade occurs, then according to the table
A) domestic production is higher before trade than after trade. B) the country imports 16 units a day. C) the country imports 6 units a day. D) the country exports 6 units a day. E) the country exports 22 units a day.
Which of the following would not be considered a positive addition to household wealth?
A) a credit card balance B) the balance in your checking account C) 1,000 shares of Microsoft stock D) the equity in one's home