Ceteris paribus, if buyers expect the price of airline tickets to fall in the future, then right now there should be
A. A decrease in the supply of airline tickets.
B. No change in the supply of or demand for airline tickets because the price is not changing right now.
C. A decrease in the demand for airline tickets.
D. An increase in the demand for airline tickets.
Answer: C
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If the stock market behaves according to the efficient market hypothesis, then
a. investment in stocks cannot be profitable. b. future changes in stock movements are completely predictable. c. current stock prices reflect all currently available information. d. both b and c. e. all of the above.
Within the Keynesian aggregate expenditure-output model, if an economy operates below full employment:
a. a reduction in wage rates and resource prices will soon restore full-employment equilibrium. b. a reduction in the real interest rate will soon restore full-employment equilibrium. c. an increase in the real interest rate will soon restore full-employment equilibrium. d. the economy may remain below full employment unless aggregate expenditures increase.
Firms continue to produce (illegally) counterfeit computer software and documentation. Some of the illegal copies are Microsoft products, though Microsoft still has a large share of the market for its products. The presence of enforced copyright protection laws indicates that the market for Microsoft software cannot be considered a competitive market because:
A. pirate producers are not profit-maximizing entrepreneurial firms. B. the products of pirates are not identical to those of Microsoft. C. buyers are not price takers. D. there are significant barriers to entry.
Roy just got a big promotion at work which includes a sizable pay increase. Roy's demand for Ramen Noodles, an inferior good, will likely:
A. decrease, and his demand curve will shift to the left. B. increase, and his demand curve will shift to the right. C. decrease, causing a movement down along his demand curve. D. decrease, and his demand curve will shift to the right.