A decrease in aggregate demand is seen as a(n):
A. upward movement along the aggregate demand curve.
B. downward movement along the aggregate demand curve.
C. shift to the left in the aggregate demand curve.
D. shift to the right in the aggregate demand curve.
Ans: C. shift to the left in the aggregate demand curve.
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A. Define the term "globalization."
b. Describe the benefits of globalization. c. Who is likely to oppose globalization and why? What will be an ideal response?
A price floor in a perfectly competitive market
a. is efficient b. is a Pareto improvement c. is effective only if it is set below the equilibrium price d. transfers some surplus from consumers to producers e. transfers some surplus from producers to consumers
Economists argue competitive markets provide a "natural remedy" to discriminatory wage practices. Which of the following is widely recognized as a potential limit to the effectiveness of that natural remedy?
a. Some workers are members in unions. b. Some firms pay efficiency wages; others do not. c. Some customers are discriminatory in their buying habits. d. Some employees have accumulated more human capital than other employees.
How can a proportional tax achieve vertical equity?