Suppose prices for new homes have risen, yet sales of new homes have also risen. We can conclude that:
a. the demand for new homes has risen.
b. the law of demand has been violated.
c. new firms have entered the construction industry.
d. construction firms must be facing higher costs.
a
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At a competitive equilibrium, if there are no taxes, subsidies, price regulations, quantity regulations, or externalities,
A) the marginal benefit is greater than the marginal cost. B) resource use is efficient. C) the marginal benefit is less than the marginal cost. D) both the marginal benefit and the marginal cost of the last unit produced equal zero. E) the marginal benefit is greater than the marginal cost by as much as possible.
Moving along which curve does the money wage rate and the price level change in the same proportions?
A) the AD curve B) the SAS curve C) the LAS curve D) None of the above because there is no curve along which both the money wage rate and the price level change in the same proportions.
List three characteristics of demand curves. Make sure to explain the shape of the curve and the meaning of the vertical and horizontal intercepts
What will be an ideal response?
The period of modern economic growth occurred from ________________________ onward.
a. 1776 b. the 1870s c. the 1920s d. the 1950s