An increase in the price level leads to
A) an upward movement along the aggregate supply curve.
B) a downward movement along the aggregate supply curve.
C) a leftward shift of the aggregate supply curve.
D) a rightward shift of the aggregate supply curve.
E) neither a movement along the aggregate supply curve nor a shift of the aggregate supply curve.
A
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The demand for the product of a competitive price-taker firm is:
a. perfectly inelastic. b. perfectly elastic. c. greater than zero but less than one. d. dependent on the availability of substitutes for the firm's product.
The endowment effect is the tendency:
A. to place a higher value on something a person already owns simply because they own it. B. to have a harder time parting with wealth people have held the longer the amount of time they hold it. C. for a person to believe they hold a particular skill because someone told them they do. D. for people to want to bestow their own beliefs on others when making decisions.
Between 1950 and 2004, standards of living in the OECD countries
A) did not change at all. B) were converging. C) all increased at the same rate. D) decreased at the same rate. E) decreased, but at different rates.
Refer to the above figure. If the government imposes a price floor of $60
A. the quantity of goods that will be traded is 200. B. the quantity of goods that will be traded is 0. C. the quantity of goods that will be traded is 100. D. the quantity of goods that will be traded is 150.