Price elasticities of supply are always
a. equal to price elasticities of demand when the market is in equilibrium
b. negative
c. positive
d. greater than one
e. less than one
C
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Which of the following measures gives the earliest warning of increasing inflation?
A) the Consumer Price Index B) the Producer Price Index C) the Personal Consumption Expenditure Index D) All of these should signal the same short-run inflation.
Which of these statements correctly explains the shape of the aggregate demand curve? a. As prices fall, nominal income rises and so does the demand for real goods and services
b. Rising prices reduce people's wealth and thereby decrease spending. c. With falling prices, government decides to spend less to increase the price level. d. Businesses increase investment spending in response to higher interest rates caused by inflation. e. As prices fall, domestically produced goods become more expensive relative to foreign goods, resulting in an increase in production.
Soda companies pay universities for the exclusive right to sell their products on campus. For example, the University of Buffalo agreed to sell only Pepsi on campus in exchange for $220,000 per year. This agreement:
A. is harmful to students because the extra money gained by the university cannot be used for their benefit. B. may be beneficial for students, depending on how the university uses the $220,000. C. is beneficial for students if Pepsi charges a monopoly price on campus. D. is beneficial for students because they no longer have to make a choice about which soda to purchase.
Describe the trends in U.S. manufacturing employment and U.S. manufacturing output over the last 40 years. What factors have contributed to these?
What will be an ideal response?