The impact of Hurricane Katrina on consumers in the economy was to make them very pessimistic about their future incomes. How does this increased pessimism affect the aggregate demand curve?
A) This will move the economy down along a stationary aggregate demand curve.
B) This will shift the aggregate demand curve to the left.
C) This will shift the aggregate demand curve to the right.
D) This will move the economy up along a stationary aggregate demand curve.
B
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How does the time frame over which a supply decision is made influence the elasticity of supply? Explain your answer
What will be an ideal response?
In laboratory experiments, the behavior of players in the ultimatum game suggests that people:
A. value fairness. B. act in their own narrow self-interest. C. have impulse control problems. D. are deceitful.
Which of the following would NOT affect a good's price elasticity of demand?
A. the proportion of one's budget spent on an item B. the ease of substitution between goods C. the cost of producing the good D. the number of substitute goods available
The monopolistically competitive firm maximizes profit by producing to the point at which
A. MC = P. B. ATC = AVC. C. MR = AR. D. MC = MR.