In the Classical model, the price level is determined by
A) aggregate supply.
B) the level of output.
C) the Cambridge k.
D) aggregate demand.
D
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What would happen if three more restaurants opened in a small town where only four restaurants were open for business originally?
A. People would pay higher prices to eat out. B. The town would raise significantly more taxes. C. The restaurants would become more like a competitive market. D. The restaurants would form a cartel in the town.
An asset is anything of value owned by a person or firm
Indicate whether the statement is true or false
When carmakers began to cut the costs of producing cars by designing the chassis, engines, and transmissions so that different models could be produced on the same assembly line, production costs fell $240 per car. This idea best illustrates:
A. diminishing marginal product. B. diseconomies of scale. C. economies of scale. D. constant returns to scale.
If the demand for a product remains the same and the supply falls,
A) the market clearing price will fall and the equilibrium quantity will rise. B) the market clearing price will rise and the equilibrium quantity will fall. C) both the market clearing price and the equilibrium quantity will fall. D) both the market clearing price and the equilibrium quantity will rise.