The only variable that can affect a movement along the demand curve is
A) income levels.
B) the price of the good itself.
C) the number of buyers.
D) the number of substitutes.
B
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Economic theory
A. is a deliberate simplification of factual relationships. B. seeks to disprove a hypothesis. C. is based mainly on assumptions. D. seeks to prove political ideals.
In the United States during the late 1990s, the unemployment rate fell from previous years and the inflation rate was lower than in previous years. This set of events is best described by saying that the
A) economy moved to a lower point on its short-run Phillips curve but the short-run Phillips curve did not shift. B) economy moved to a higher point on its short-run Phillips curve but the short-run Phillips curve did not shift. C) long-run Phillips curve shifted rightward. D) short-run Phillips curve shifted downward. E) short-run Phillips curve shifted upward.
When production moves from the efficient quantity to a point of overproduction,
A) consumer surplus definitely increases. B) the sum of producer surplus and consumer surplus increases. C) there is a deadweight loss. D) consumers definitely lose and producers definitely gain. E) consumers definitely gain and producers definitely lose.
Even though it is not a perfect measure, economists can use real GDP to
i. compare how the value of the goods and services produced in China have changed over the past 10 years. ii. look at the length of recessions and expansions in the United States. iii. compare the standard of living in China versus the standard of living in Vietnam. A) ii only B) i, ii and iii C) i and iii D) i and ii E) ii and iii