The aggregate demand curve shifts left if either
a. speculators gain confidence in U.S. assets or foreign countries enter into recession.
b. speculators gain confidence in U.S. assets or recessions in foreign countries end.
c. speculators lose confidence in U.S. assets or foreign countries enter into recession.
d. speculators lose confidence in U.S. assets or recessions in foreign countries end.
a
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The utilities commission in a city is currently examining pay telephone service in the city. The commission has been asked to evaluate a proposal by a city council member to place a $0.10 price ceiling on local pay phone service
The staff economist at the utilities commission estimates the demand and supply curves for pay telephone service as follows: QD = 1600 - 2400P QS = 200 + 3200P, where P = price of a pay telephone call, and Q = number of pay telephone calls per month. a. Determine the equilibrium price and quantity that will prevail without the price ceiling. b. Analyze the quantity that will be available with the price ceiling (in the long-run). c. The city council realizes that the telephone company could curtail pay phone service in response to the ceiling. To prevent this, the council plans to impose a requirement that the telephone company must maintain the current number of pay phones. In light of this additional restriction, what will be the likely impact of the price ceiling?
Refer to the table below. A technological advance lowers production costs such that the quantity supplied increases by 60 units of this product at each price. As a result of this technological change, equilibrium output in this market:
A. Decreased by 60 units
B. Increased by 60 units
C. Increased by 30 units
D. Decreased by 30 units
Which of the following is TRUE about the long run?
A. All resources are fixed. B. At least one resource is fixed. C. All resources are variable. D. none of these
Which of the following is a problem inherent in centrally planned economies?
A) There are no problems and everyone, including consumers, is satisfied. B) There is too much production of low-cost, high-quality goods and services. C) Production managers are more concerned with satisfying government's orders than with satisfying consumer wants. D) Unemployment is too high.