Refer to Figure 15.7. Suppose the money supply increases. This will cause interest rates to ________ and cause a shift from point ________.
A. decrease; D to point C
B. decrease; D to point A
C. increase; A to point B
D. increase; D to point A
Answer: B
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Identify a statement that is true about a linear demand curve.
A. Along a linear demand curve, both the slope and price elasticity are constant. B. Along a linear demand curve, the price elasticity is constant, but the slope varies. C. Along a linear demand curve, total revenues are constant. D. Along a linear demand curve, the slope is constant, but the price elasticity varies. Along a linear demand curve, total revenues are negative.
A certain production possibilities frontier shows production possibilities for two goods, jewelry and clothing. Which of the following concepts cannot be illustrated by this model?
a. the flow of dollars between sellers of jewelry and clothing and buyers of jewelry and clothing b. the tradeoff between production of jewelry and production of clothing c. the opportunity cost of clothing in terms of jewelry d. the effect of economic growth on production possibilities involving jewelry and clothing
Other things the same, what happens to the price level and quantity of output when an adverse shift in the short run aggregate supply curve occurs?
According to the graph for differences in marginal utility of income, if the rich have a greater marginal utility of income, when society transfers money from the rich to the poor, ______.
a. the rich gain more than the poor lose b. the poor lose more than the rich gain c. the rich lose more than the poor gain d. the poor gain more than the rich lose