A newspaper reports that in an urban area the average price of new homes had decreased, but the number of new homes sold had increased. This situation would best be explained by a(n):
a. Increase in supply
b. Decrease in demand
c. Increase in demand
d. Decrease in supply
a. Increase in supply
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The payoff matrix below shows the daily profit for two firms, Row Restaurant and Column Cafe, for two different strategies, publishing coupons in the student paper and not publishing coupons in the student paper. 
If Row Restaurant publishes coupons, Column Cafe would earn the highest profit if it:
A. did not publish coupons. B. chooses either strategy because Column Cafe will have the same profit in either case. C. also published coupons. D. only offered coupons half of the time.
One of the changes in the welfare system of the United States that occurred in 1996 was a move to block grants for states. What advantage(s) might a block grant system allow?
What will be an ideal response?
An increase in the value of the marginal product of labor has the effect of increasing the
a. demand for labor. b. wage. c. quantity of labor employed. d. All of the above are correct.
Keynes argued that because of sticky prices and wages
A. the long-run aggregate supply curve slopes downward. B. the short-run aggregate supply curve is probably vertical. C. the short-run aggregate supply curve could be horizontal. D. the aggregate demand curve is vertical.