Refer to the below graph. Assume that the economy is in initial equilibrium where AD1 intersects AS1. If there is a decrease in aggregate demand to AD2, then according to mainstream economists, if prices and wages are not flexible, this will result in an equilibrium at point:
A. E
B. B
C. C
D. D
A. E
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Suppose that a per-unit subsidy is granted to each individual who consumes a product providing external benefits to society at large. Each individuals demand curve will shift ________, and the market demand curve for the product will shift ________
A) to the right; to the right B) to the right; to the left C) to the left; to the left D) to the left; to the right
The main purpose of the Fed is to:
a. serve as the bankers' bank for member banks. b. regulate interest rates. c. print Federal Reserve Notes. d. regulate financial institutions. e. maintain the proper functioning of our money system.
Monopolistically competitive markets are like perfectly competitive markets because in both markets firms:
A. have some control over price. B. face substantial barriers to entry. C. face a large number of competitors. D. have no control over price.
Which of the following statements about the gender gap in income is incorrect?
A. Women are underrepresented in more lucrative majors such as computer science and engineering. B. Women in many occupations have less experience, compared to men. C. Women have been denied access to high-paying male-dominated occupations. D. None of these