An increase in consumer wealth shifts the consumption function upward
a. True
b. False
Indicate whether the statement is true or false
True
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The aggregate supply curve shows the relationship between the price level and the level of real GDP produced by the nation's economy
a. True b. False Indicate whether the statement is true or false
For a monopoly, marginal revenue for all units greater than 1 is always:
A. more than price because of the quantity effect. B. more than price because of the price effect. C. less than price because of the quantity effect. D. less than price because of the price effect.
Initially, workers in the shoe industry and the computer industry earn the same wage. Reductions in trade barriers give domestic consumers access to cheaper shoes produced abroad, so domestic shoe prices fall. At the same time, foreign consumers purchase more computers, raising the relative price of computers. As a result of these changes, wages in the shoe industry ________ and wages in the computer industry ________.
A. increase; increase B. increase; decrease C. decrease; decrease D. decrease; increase
Opening this economy to trade would benefit ________ and harm ________.
A. domestic TV producers; domestic TV consumers B. domestic TV consumers; domestic TV producers C. everyone; no one D. no one; everyone