micro correct the false

Front

In supply and demand analysis, a fall in the price of coffee will cause the price of tea to rise and the quality of tea to fall

Back

In supply and demand analysis, a fall in the price of coffee will cause the price of tea to fall and the quality of tea to rise

Front

If the government imposed a price ceiling on rents charged by land lords in NYC, the rent ceiling would raise rents and create an excess supply problem

Back

If the government imposed a price ceiling on rents charged by land lords in NYC, the rent ceiling would lower rents and create an excess supply problem

Front

In supply and demand analysis a rise in a tax on an item will cause an increase in its supply, lowering the equilibrium price and raising the equilibrium quantity.

Back

In supply and demand analysis a rise in a tax on an item will cause a decrease in its supply, raising the equilibrium price and lowering the equilibrium quantity.

Front

In supply and demand analysis, a rise in wages in the beef industry will decrease the demand for beef

Back

In supply and demand analysis, a rise in wages in the beef industry will decrease the supply for beef

Front

A price floor is used by the government to set a price above that of the free market level and results in a excess demand problem

Back

A price floor is used by the government to set a price above that of the free market level and results in a excess supply problem

Front

In the supply and demand framework, a technological improvement will increase supply and raise equilibrium price and quantity.

Back

In the supply and demand framework, excess supply will increase supply and lower equilibrium price and quantity.

Front

If the US government imposed a tariff on imported cars, then the price of a car would fall, the quantity of cars bought and sold would increase and the supply of cars form domestic producers would increase.

Back

If the US government imposed a tariff on imported cars, then the price of a car would rises, the quantity of cars bought and sold would Decreases and the supply of cars form domestic producers would increase.

Front

If workers invest in a college education, economic theory suggests they should:

1) earn a competitive return on their investment in college degree, 2) recoup the cost of their education after a few years of working, and 3) earn a wage that is at least double that of worker who did not earn a degree

Back

Invest in a college degree

Front

The imposition of quota on foreign sellers of cars should 1) raise the price of car, 2) force foreign sellers to pay a tax to the government, and 3) reduce the quantity supplied of cars by domestic sellers.

Back

Quota = reduces foreign supply -> price (up)

= domestic product (up)

Front

If it is a good theory, economic analysis involves no simplifications of reality

Back

If it is a good theory, it will help to

1) understand the real world

2) predict events in the real world

3) guide policy in the real world