Changes in relative prices usually lead to increases in real income because prices have changed
a. True
b. False
Indicate whether the statement is true or false
False
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A price discriminating monopolist will
A) charge a lower price to those consumers who have more elastic demand. B) charge a higher price to those consumers who have more inelastic demand. C) charge more to those consumers who have more substitute goods. D) charge the same price to all consumers.
At higher interest rates, fewer people or firms will want to borrow. At lower interest rates, fewer people or firms will want to save
a. True b. False Indicate whether the statement is true or false
What impact did the soaring oil prices of 2007 and the first half of 2008 have on the economy?
a. They increased SRAS, causing real output and employment to increase. b. They reduced SRAS, causing real output and employment to increase. c. They increased SRAS, causing real output and employment to decline. d. They reduced SRAS, causing real output and employment to decline.
Figure 5-1
In , S1 and D illustrate the demand and supply for a product if it were produced in a normal competitive market. Which of the following would be true if the firms in the industry were instead able to get government licensing restrictions to limit competition in the market?
a.
The restricted market supply would be S3, resulting in a lower price and a higher than efficient level of output.
b.
The restricted market supply would be S3, resulting in a higher price and a less than efficient level of output.
c.
The restricted market supply would be S2, resulting in a lower price and a higher than efficient level of output.
d.
The restricted market supply would be S2, resulting in a higher price and a less than efficient level of output.