Assume that goods X and Y are substitutes and are produced in perfectly competitive markets. All else constant, in the short run, a decrease in the supply of good X would cause:
A) an increase in the demand for good Y.
B) a decrease in the demand for good Y.
C) an increase in the supply of good Y.
D) a decrease in supply of good Y.
A
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The relationship between the price level and the real Gross Domestic Product (GDP) without full adjustment or full information is represented by
A) the distance between the long-run aggregate supply curve and the short-run aggregate supply curve. B) the short-run aggregate supply curve. C) the long-run aggregate supply curve. D) the aggregate demand curve.
Which of the following is likely to cause a rise in the wage rate and a decrease in the number of workers hired in a garage?
A) The shutdown of a nearby garage B) A decrease in the price of the services provided by the garage C) An increase in the price of the services provided by the garage D) The opening of a new garage nearby that offers higher wages to its workers
If the opportunity cost of producing a T-shirt is ________ in China than in the United States, China has ________ advantage in producing T-shirts
A) lower; a comparative B) lower; an absolute C) higher; a comparative D) higher; an absolute E) higher; no
Refer to Figure 7-1. At the market equilibrium, the deadweight loss is equal to
A) $0. B) $250,000. C) $500,000. D) $1,000,000.