Exhibit 4-2 Supply and demand curves
In Exhibit 4-2, which of the following might cause a shift from S1 to S2?
A. A decrease in input prices.
B. A decrease in consumer prices.
C. An increase in input prices.
D. An increase in consumer income.
Answer: A
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The short-run aggregate supply curve (SRAS) is based on the theory that wages are flexible
a. True b. False Indicate whether the statement is true or false
Suppose there are only two firms in an economy: Cowhide, Inc produces leather and sells it to Couches, Inc, which produces and sells leather furniture. With each $1,000 worth of leather that it buys from Cowhide, Inc, Couches, Inc produces a couch and sells it for $2,600 . Neither firm had any inventory at the beginning of 2015 . During that year, Cowhide produced enough leather for 25 couches
Couches, Inc bought 80% of that leather for $20,000 and promised to buy the remaining 20% for $5,000 in 2016 . Couches, Inc produced 20 couches during 2015 and sold each one during that year for $2,600 . What was the economy's GDP for 2015? a. $25,000 b. $52,000 c. $57,000 d. $65,000
GDP and real GDP are ways to measure
A. economic output. B. inflation. C. market equilibrium. D. disinflation.
For a perfectly competitive market in which firms face an identical constant marginal costs, the amount of consumer surplus increases if
A. market demand increases. B. marginal cost increases. C. market demand decreases. D. none of these: insufficient information to answer.