If the purchase and sale of a currently illegal drug (for example, marijuana) were decriminalized, economists would expect
A) an increase in demand and supply of this drug.
B) an increase in demand and a decrease in supply of this drug.
C) a decrease in demand and an increase in supply of this drug.
D) a decrease in demand and supply of this drug.
A
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"We offer the best deal in town. If somebody charges a lower price, bring in their ad and we'll beat it!" From the economic point of view, the firm promising to match its competitor's low prices is attempting to
A) lie. B) cheat. C) learn more about the market. D) do nothing more than bait and switch their customers.
If government spending does not change, an increase in the government deficit leads to
A) an increase in current consumption. B) a decrease in current consumption. C) no change in current consumption. D) it depends on the marginal propensity to consume.