Suppose that the buyers of bread higher incomes and bread is a normal good. In the market for bread, this will cause the ________ and the equilibrium price to ________.
A. supply of bread to decrease; increase
B. supply of bread to increase; decrease
C. demand for bread to decrease; increase
D. demand for bread to increase; increase
Answer: D
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Refer to Table 19-20. Given the following information, calculate the rate of increase in the price level from 2015 to 2016
A) 8.6% B) 7.9% C) -7.9% D) -8.6%
If planned aggregate expenditure is less than total production
A) the economy is in equilibrium. B) GDP will increase. C) actual inventories will equal planned inventories. D) firms will experience an unplanned increase in inventories.
Property rights to resource uses are assigned to owners of the firm to avoid
A) hold-up problems. B) externalities. C) value creation. D) normal profits to the company as a whole.
The market price of a transaction always includes all of the costs and benefits associated with the transaction.
Answer the following statement true (T) or false (F)