An inferior good exhibits
A) a negative income elasticity.
B) a downward sloping Engel curve.
C) a decline in the quantity demanded as income rises.
D) All of the above.
D
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If an oligopolistic firm in a game theory kind of market cuts price, in the long run
a. the other firms will follow and all firms will be worse off b. the price cutter will be worse off if other firms don't cut price as well because revenue equals price times output and since price was cut, its revenue must be less c. its market share and profit will increase at the expense of its rivals d. the other firms will follow and all firms will be better off because at lower prices, industry sales will increase e. it will become a monopoly, having outsmarted its rivals, and will be able to raise the price again. That's how the game is played.
Which of the following correctly describes the difference between aggregate output and aggregate demand?
a. Aggregate output is the relationship between the average price level and the quantity of all goods and services demanded, while aggregate demand is the total quantity of goods and services produced in the economy during a given time period, with other things constant. b. Aggregate output is the total quantity of goods and services produced in the economy during a given time period, while aggregate demand is the relationship between the average price level and aggregate output demanded, with other things constant. c. Aggregate output is that portion of the total quantity of goods and services sold through export sales, while aggregate demand is the remaining portion of the total quantity of goods and services sold domestically. d. Aggregate output is the total quantity of goods and services imported in to the economy during a given time period, while aggregate demand is the relationship between the general price level and aggregate output demanded, with other things constant.
The accompanying figure shows Becky's daily production possibilities curve for dresses and skirts.
Point U is:
A. inefficient. B. efficient. C. unattainable. D. attainable.
Concerned about the political fallout from rising gas prices, the US government decides to impose a price ceiling on gasoline of $3 a gallon. If the oil-producing nations increase production and drive the equilibrium price of gasoline to $3 a gallon, ______. The market for gasoline is _____.
Fill in the blank(s) with the appropriate word(s).