The price of movie tickets in a town has risen from $7 to $9. What is the most likely effect of the change in price?
a) The demand curve for movie tickets will move right
b) The quantity demanded of movie tickets will increase
c) The demand curve for movie tickets will move left
d) The quantity demanded of movie tickets will decreade
Ans: d) The quantity demanded of movie tickets will decreade
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The multiplier-accelerator model
A) suggests that a downturn in real GDP will lead to a sharp fall in investment, which leads to further reductions in GDP through the multiplier. B) emphasizes that current investment spending depends negatively on the expected future growth of GDP. C) links investment spending to stock prices. D) emphasizes the role of real interest rates and taxes.
If the price elasticity of supply of corn is 3.12, then is the supply of corn elastic or inelastic?
What will be an ideal response?
In addition to government purchases or changes in taxes, demand shocks in the economy can increase or decrease GDP, leading to a fall or rise in the trade balance. Which of the following would NOT represent a demand shock?
a. a change in household wealth leading to a rise in consumption expenditures. b. a rise in inflation. c. a change in the marginal propensity to import, causing imports to rise. d. an increase in technology, causing investment spending to rise.
Given their skills and education, steelworkers earn higher incomes than they would in other occupations. This is partly because:
A. steel workers face a higher risk of getting injured or killed. B. it is costly to acquire skills necessary for jobs at steel mills. C. few people have skills and knowledge required for jobs at steel mills. D. All of these