Which theory says that inflation occurs when the demand for goods exceeds the existing supply?
(A) Quantity theory
(B) Demand-pull theory
(C) Cost-push theory
(D) Supply-and-demand theory
Ans: (B) Demand-pull theory
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Why does the supply curve of the perfectly competitive industry shift to the right whenever a new firm enters the industry?
What will be an ideal response?
When the price of computer printers decreased from $100 to $85, the number of computer printers produced fell from 1,000 per week to 850 per week. Using this information, we know the supply of computer printers is
A. elastic. B. perfectly inelastic. C. inelastic. D. unit elastic.
If you place a part of your summer earnings in a savings account, you are using money primarily as a:
A. medium of exchange. B. store of value. C. unit of account. D. standard of value.
Refer to the information provided in Figure 6.6 below to answer the question(s) that follow.
Figure 6.6Refer to Figure 6.6. Bill's budget constraint is CD. If the price of bell peppers increases, Bill's new budget constraint is
A. EF. B. AD. C. BE. D. AO.