The inverse relationship between quantity demanded and price of a good or service can be explained, in part, by
A. a shift in the demand curve.
B. diminishing marginal utility only.
C. the real income effect.
D. diminishing marginal utility and the rule of equal marginal utilities per dollar.
Answer: D
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Most economists believe that raising the minimum wage decreases the employment opportunities for low-skilled workers
Indicate whether the statement is true or false
An increase in the discount rate ________ bank reserves and ________ the money supply if banks respond appropriately to the change in the rate
A) increases; decreases B) decreases; decreases C) decreases; increases D) increases; increases
What causes structural unemployment?
a. workers searching for suitable jobs and firms looking for suitable workers b. the persistent mismatch of workers’ skills and the requirements of jobs c. short-term cyclical fluctuations in the economy d. short-term seasonal fluctuations in the job market
If real GDP has increased by 3 percent and nominal GDP has increased by 5 percent, then:
A. net factor income is 2 percent. B. inflation is 2 percent. C. depreciation is 2 percent. D. net exports are 2 percent.