An increase in equilibrium price and a decrease in equilibrium quantity could be caused by a(n)
a. increase in resource prices
b. increase in demand
c. increase in supply
d. favorable shift in tastes and preferences
e. improvement in production technology
A
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The Wii is a wildly popular home video game console released by Nintendo. The Wii system was first available in the U.S. in November, 2006 and has sold more than 30 million units as of August 2010. The Wii retails for $199
Suppose Ahmed is willing to pay $230, Lana is willing to pay $175, and Bodie is willing to pay $300 for a Wii. What is the value of Lana's consumer surplus? A) No consumer surplus is generated because Lana will not buy the Wii. B) $249 C) $225 D) $24
Shocks to long-run aggregate supply can be a source of business fluctuations ________
A) only in real business cycle models B) only in new Keynesian models C) in both real business cycle and new Keynesian models D) only if the money supply rises
(Consider This) Government passes a law requiring all domestic clothing factories to pay workers at least $20 per hour. As a result, domestic clothing companies move their operations overseas, leaving domestic workers unemployed. This situation
illustrates the problem of: A. political corruption. B. unintended consequences. C. misdirection of stabilization policy. D. principal-agent.
Refer to the information provided in Figure 7.9 below to answer the question(s) that follow. 
Figure 7.9Refer to Figure 7.9. The firm's isocost line could shift from AB to CD if
A. the price of capital decreased. B. the firm's total expenditures increased by 50%. C. the price of capital and labor each decreased by 33.3%. D. either B or C