An economy in which output has decreased and prices have increased would suggest that there has been a:
A. negative demand side shock.
B. negative supply side shock.
C. positive demand side shock.
D. positive supply side shock.
Answer: B
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Which of the following is true regarding the foreign holdings of U.S. dollars?
What will be an ideal response?
High-end retailers spend a lot on architecture, displays, and packaging in order to take advantage of the:
A. Hindsight bias B. Confirmation bias C. Availability heuristic D. Framing effect
According to the graph shown, if the market goes from equilibrium to having its price set at $10 then:
A. $12 gets transferred from consumer to producer in surplus. B. all producer surplus lost is gained by consumers. C. all consumer surplus lost is gained by producers. D. $12 gets transferred from producer to consumer in surplus.
Predatory pricing is a form of barrier to entry
Indicate whether the statement is true or false