Ceteris paribus, which of the following would generally cause an increase in the demand curve for new automobiles?
A. The new models being perceived as ugly compared with old models.
B. Consumer expectations that the price of new automobiles will be lower next year.
C. A decrease in the price of new automobiles.
D. An increase in consumers' income.
Answer: D
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Money is:
A. the sum of assets minus debts. B. the same as income. C. all financial assets. D. any asset used to make purchases.
Refer to the above figure. The rational expectations hypothesis implies that an anticipated increase in aggregate demand from AD1 to AD2 will
A. will shift the aggregate supply (AS) curve to the right. B. move the economy from a to b. C. move the economy from c to b. D. move the economy from a to c.
Refer to Scenario 13.1 below to answer the question(s) that follow. SCENARIO 13.1: The government of Catalina Island is currently inviting investors to bid for the exclusive right to provide cable television service to its residents. The market demand for this service is P = 55 - 0.01Q, where Q is the number of households that would subscribe to the cable service and P is the monthly fee charged to the subscribers. The associated marginal revenue curve is MR = 55 - 0.02Q. Universal Entertainment is interested in bidding for the right to provide cable service on Catalina Island. It has a constant average and marginal cost of $15 for providing cable service to each household.Refer to Scenario 13.1. If Universal Entertainment were to be awarded the exclusive right to provide cable
service on Catalina Island, how many households would it service? A. 2,000 B. 2,750 C. 4,000 D. 5,500
A rise in the real exchange rate is called
A) a real depreciation. B) a real appreciation. C) a real bargain. D) a real devaluation.