Will a large increase in the demand for a good cause a large increase in its price?
A) No; an increased demand is associated with lower prices.
B) Not if the demand for the good is highly elastic.
C) Not if the demand for the good is highly inelastic.
D) Not if the supply of the good is highly elastic.
E) Not if the supply of the good is highly inelastic.
D
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Real world economic data supports the view that higher interest rates are associated with ________
A) higher saving and consumption B) lower saving and higher consumption C) higher saving and lower consumption D) lower saving and consumption
Suppose a small island nation imports sugar for its population at the world price of $1,500 per ton. The domestic market for sugar is shown below.
With no subsidy, the equilibrium price of sugar is ________ per ton, and the equilibrium quantity is ________ tons per day.
A. $1,500; 12 B. $1,000; 12 C. $1,000; 8 D. $1,500; 8
Using Figure 1 above, if the aggregate demand curve shifts from AD1 to AD2 the result in the short run would be:
A. P1 and Y2. B. P3 and Y1. C. P2 and Y2. D. P2 and Y3.
Which of the following would you expect to result in faster economic growth?
A) a decrease in research and development spending B) a decrease in the stock of capital per worker C) a decrease in the average level of education in the economy D) the invention of new computers that increase labor productivity