The slope of the aggregate supply curve increases as output increases because
A. the cost of resource use increases as potential is reached.
B. consumers are willing to pay more as output expands.
C. firms substitute capital for labor as prices increase.
D. firms substitute capital for labor as capacity is reached.
Answer: A
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Which of the following statements is true?
A) If the opportunity cost of current consumption is high, people will save less. B) If the opportunity cost of current consumption is high, the inflation rate will increase. C) If the opportunity cost of current consumption is high, the unemployment rate will decrease. D) If the opportunity cost of current consumption is high, people will save more.
Refer to the figure above. The loss in consumer surplus due to the imposition of the tax is given by the areas ________
A) JBIE and BIA B) EAG AND GHF C) CAE AND EAHF D) JBHF AND ABH
As Shana's consumption of tacos decreases, her
A) marginal utility from tacos increases. B) marginal utility from tacos decreases. C) total utility from tacos increases. D) both total and marginal utility from tacos decrease.
A graph shows that as fees to use ATM machines increase, people use them less frequently. The graph of this relationship would show
A) an inverse relationship. B) a negative relationship. C) a direct relationship. D) Both answers A and B are correct.