The difference between the demand curve and the supply curve is that the demand curve shows ______, whereas the supply curve shows______.
a. the lowest price suppliers are willing to accept for a good or service; the highest price consumers are willing to pay for it
b. the highest prices consumers are willing to pay for a good or service; the lowest prices suppliers require to provide it
c. how increasing the price of a good increases its luxury status; how long it takes to bring goods to market
d. how popular an item is regardless of its price; the available stock on hand at a given point in time
b. the highest prices consumers are willing to pay for a good or service; the lowest prices suppliers require to provide it
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The fact that output gaps will not last indefinitely, but will be closed by rising or falling inflation is the economy's:
A. income-expenditure multiplier. B. self-correcting property. C. short-run equilibrium property. D. long-run equilibrium property.
The United Auto Workers is striking against Ford. The Teamsters refuse to deliver steel to Ford. This is an example of
A) a jurisdictional dispute and is illegal under the Taft-Hartley Act. B) a secondary boycott and is illegal under the Taft-Hartley Act. C) a sympathy strike and is illegal under the Taft-Hartley Act. D) a closed shop and is illegal under the Wagner Act.
When someone is served pizza and soda for dinner, it is typical behavior to eat some pizza, then drink some soda, then eat more pizza, and so on, until the person stops consuming both. How can this behavior be explained using economic concepts?
A. The individual is revealing that he can't decide whether he gains more utility from pizza or from soda. B. People tend to act irrationally around food, and the concept of utility maximization cannot be applied. C. The person eats pizza until his marginal utility for pizza is lower than it is for soda, then he switches to soda. D. The concept of unlimited wants says he will never tire of eating pizza and soda.
Contractionary fiscal policy involving federal spending cuts or tax increases can help to reduce the upward pressure on the _____________ level by shifting aggregate demand to the left.
a. trade b. production c. price d. employment