Other things remaining the same, an increase in the price of butter can be expected to
A) increase margarine sales.
B) decrease margarine sales.
C) increase butter sales.
D) None of the above
A
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A period of very high and accelerating inflation is known as
A) deflation. B) disinflation. C) hyperinflation. D) nuclear inflation.
According to the efficiency wage model, firms tend to pay workers
A) the market-clearing wage that efficiently equates labor supplied and demanded. B) in excess of the market-clearing wage to provide an incentive for productivity and efficiency. C) less than the market-clearing wage to assure themselves a pool of workers ready to replace workers who quit. D) less than the market-clearing wage to minimize labor cost per unit of production.
If there is a shortage of product X:
A. the price of the product will rise. B. the price of the product will decline. C. the supply curve will shift to the left and the demand curve to the right, eliminating the shortage. D. fewer resources will be allocated to the production of this good in the future.
Related to the Economics in Practice on p. 496: In 2014, the Congressional Budget Office estimated that the federal debt was ________ percent of GDP.
A. 24 B. 42 C. 74 D. 100