Which of the following could shift the demand for a good to the right?
a. a decrease in income, if the good is a normal good
b. an increase in the price of a complementary good
c. a decrease in the good's price, if the good is normal
d. an increase in the good's price, if the good is inferior
e. an expectation of a future price increase
E
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Long-run profit earned by a monopolistically competitive firm is driven to the competitive level due to a(n)
a. change in the technology that the firm utilizes. b. shift of its demand curve. c. shift of its supply curve. d. increase in the firm's average cost of production.
The income approach to measuring GDP ________.
A. focuses on how income is spent B. uses the payments paid to the four resources used to produce goods and services to estimate GDP C. adds up all household expenditures to calculate aggregate income and GDP D. ignores how income is earned and focuses instead on how it is used
According to the text, the Fed and other policymakers are concerned about:
A. inflation rates that are too high only. B. inflations rates that are too low only. C. inflation rates that are either too high or too low compared to its set target. D. annual inflations rates that exceed 10%.
In monopoly when abnormal profits are made:
a) The price set is greater than the marginal cost b) The price is less than the average cost c) The average revenue equals the marginal cost d) Revenue equals total cost