The interaction of supply and demand explains
A) the prices of goods and services but not their quantities.
B) the quantities of goods and services but not their prices.
C) both the prices and the quantities of goods and services.
D) neither the prices nor the quantities of goods and services.
C
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Which of the following is not a way by which price-discriminating firms can segment a market?
A) on the basis of the supplier's marginal cost of production, for example requiring customers to pay a premium for customizing options B) on basis of the buyer's location, for example requiring out-of-state students to pay higher tuition C) on the basis of time of purchase, for example long-distance calling D) by requiring an advance purchase, for example airline tickets
The vertical portion of the aggregate supply curve shows that at full employment an increase in the price level will:
a. not alter the economy's full-employment real GDP. b. increase the economy's full-employment real GDP. c. reduce the quantity of goods and services purchasers will demand. d. improve the overall efficiency of resource use.
Assume that foreign capital flows into a nation rise due to expected increases in stock market appreciation. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the GDP Price Index and monetary base in the context of the Three-Sector-Model? a. The GDP Price Index rises and monetary base rises
b. The GDP Price Index rises and monetary base falls. c. The GDP Price Index and monetary base fall. d. The GDP Price Index and monetary base remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
In the 1990s, inflation in the United States was
a. very close to zero. b. about 3 percent per year. c. about 6 percent per year. d. commonly referred to as "public enemy number one.".