Exhibit 4-3 Supply and demand curves
The market shown in Exhibit 4-3 is initially in equilibrium at E4. Changes in market conditions result in a new equilibrium at E3. This change is stated as a(n):
A. increase in supply and an increase in quantity demanded.
B. increase in supply and a decrease in demand.
C. decrease in supply and a decrease in quantity demanded.
D. increase in demand an increase in supply.
Answer: C
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Under a relative concept of poverty, poverty
A. doesn’t really exist. B. is higher in rich countries than in poor countries. C. can never be wholly eliminated by public policy. D. declines as technology advances.
Which is considered to be an economic resource by economists?
A. Rent B. Labor C. Money D. Wages
The individual labor supply curve is positively sloped in the short run.
Answer the following statement true (T) or false (F)
The long-run aggregate supply curve is the relationship between the quantity of real GDP supplied and ________ when ________
A) the price level; real GDP equals potential GDP B) real GDP demanded; the wage rate is constant C) the price level; real GDP equals nominal GDP D) real GDP demanded; the price level does not change