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After testing a hypothesis, you determine that the results of the test show your hypothesis is wrong. What is your next step according to the scientific method?

Figure: Drums and Shoes Which of the following statements is most consistent with the above production possibilities frontier? Choose the best answer.

The basic postulate of economics indicates that changes in incentives influence the:

Use the following to answer questions 19-20.  Figure: Price and Quantity 1 (Figure: Price and Quantity 1) In the diagram, at which price is there a surplus?

Which of the following is an example of a normative economic statement? I. Taxing carbon emissions is a good policy. II. The price of lawn furniture tends to be higher in April than in March. III. Peanut butter and jelly are often consumed as complements, but in some parts of the world they aren’t. IV. Taxing carbon emissions is a good policy because it will discourage people from burning fossil fuels that damage the environment.

(Figure: Price and Quantity 1) In the diagram, at which price is quantity demanded equal to the quantity supplied?

In the 1800s, the federal government paid railroad companies for each mile of track built. This payment scheme created incentives for railroad companies to lay track:

(Table: iPhone and iPod Production) Assuming both the United States and Canada  specialize in the good for which they each have comparative labor advantage, which of the following answers identifies a trade price that both countries would find acceptable? (Assume each country has 12 laborers.)

Extensive flooding in the Midwest decreases the world supply of corn. If corn is inelastically demanded, what will happen to total revenues from corn production?

Use the following to answer question 25.  Figure: Gun Market (Figure: Gun Market) In the gun market shown, the buyback program purchases ______ guns.