In the following question you are asked to determine, other things equal, the effects of a given change in a determinant of demand or supply for product X upon (1) the demand (D) for, or supply (S) of, X; (2) the equilibrium price (P) of X; and (3) the equilibrium quantity (Q) of X. An increase in the price of a product that is a close substitute for X will:
A. increase D, decrease P, and increase Q.
B. increase D, increase P, and decrease Q.
C. increase D, increase P, and increase Q.
D. decrease D, increase P, and decrease Q.
Answer: C
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According to Martha Olney why did blacks buy on installment at almost twice the rate of whites?
a. Installment contracts were formal and could be used legally for repossession while credit agreements could not. b. Blacks did not like to buy things on credit. c. Blacks were more likely than whites to purchase goods that required installment purchases. d. It was easier for blacks, who tended to have lower income than whites, to pay off their debts on a regular schedule that the installment plans offered.
Which of the following groups believes that the economy will move toward and achieve equilibrium at full employment without inflation if government just keeps its hands off the economy?
a. classical school b. Keynesian school c. neo-Keynesian school d. rational expectations school e. supply-side school
Economists who view the AS curve as vertical believe that government ________________ to raise Real GDP (in the short run) from the demand side of the economy. Economists who view the AS curve as upward-sloping believe that changes in Real GDP (in the short run) _________ result from changes on the demand side
A) can do many things; cannot B) cannot do anything; may C) can do many things; may D) cannot do anything; cannot
Exxon, Mobil, and Amoco are all descendants of the ___________ trust.
Fill in the blank(s) with the appropriate word(s).