Negative demand shifts can
A. cause a recession.
B. lead to a positive supply shift.
C. be defined as an increase in demand without an increase in supply.
D. be caused by falling aggregate production.
Answer: A
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The cranberry market is perfectly competitive. Reports that consuming cranberries can lead to improved health result in a permanent increase in the demand for cranberries and an immediate upward jump in the price of cranberries
As time passes, the price of cranberries ________ and the initial firms' economic ________. A) falls; profit will be eliminated B) rises still higher; loss will be eliminated C) rises still higher; profit will not change D) falls; loss will be increased E) falls; profit will not change
The aggregate demand curve shows the alternative combinations of the price level and real income that result in simultaneous equilibrium in both the goods and money markets
Indicate whether the statement is true or false
The primary problem with the argument that "we agree to be coerced if everyone is coerced" to do an action is _____
a. there is no way to know whether it is true or not b. it only applies to a limited number of situations c. it only applies to actions in the public interest d. there is no way to force everyone else to go along
Cartel members have an incentive to cheat on the cartel because:
a. the cartel does not maximize profits. b. the cartel price is the competitive price. c. each member's output quota is too high. d. each member's MR is not equal to the cartel's MC. e. the industry profit would be higher under competitive conditions.