A decrease in aggregate demand results in a(n) ________ in the ________
A) expansion; long run B) recession; short run
C) expansion; short run D) recession; long run
B
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The figure above shows the relationship between the price of a dozen roses and the quantity of roses a florist can sell. The slope between points A and B is
A) 20. B) 16. C) 2. D) 4. E) nonexistent because at point A, no roses are sold.
For social cooperation to be promoted, an effective system of property rights will be one in which people
A) behave cautiously and considerately because their rights are not clear. B) enjoy most rights in common with all other members of the society. C) know exactly what their rights are and don't expect them to change significantly. D) know their rights are always dependent upon continuing majority approval. E) realize the rules of the game can change at any moment.
In effect, banks are able to charge
A) depositors for banks' superior information about borrowers. B) borrowers for banks' superior information about depositors. C) the government for banks' superior information about borrowers and depositors. D) interest rates that are in fact above those legally allowed.
Assume the graph shown represents Dawn's budget constraint. If Dawn's income to spend on these two items increased and Dawn spends all her income on these two goods, then Dawn's total utility from consuming these two goods:
A. will likely go up, since she can afford more of both goods now.
B. will likely go down, since her marginal utility of additional items decreases the more she consumes.
C. will likely go down, since she is probably sick of these two things already.
D. will likely go up, since her marginal utility of additional items increases the more she consumes.