A critical assumption in the model of demand and supply is the independence of demand and supply curves. If the two are not independent, a shift in the supply curve can lead to a shift in the demand curve referred to as
a. supply-side economics.
b. supplier-induced demand.
c. supply shocks.
d. ceteris paribus.
e. the fallacy of supply.
B
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A key barrier to labor mobility within Europe is
A) the laziness of Germans. B) full employment in most European countries. C) differences in language and culture. D) lack of transportation. E) the physical barriers in the landscape.
The Great Depression ________
A) was largely confined to the United States B) was largely confined to European markets C) was largely confined to Asian markets D) was worldwide in scope
What is the inflation rate that most people know and use?
a. Cost of Living b. Producer Price Index (PPI) c. Consumer Price Index (CPI) d. Wholesale Price Index
Suppose that college tuition is higher this year than last year and that more students are enrolled in college this year than last year. Based on this information, we can best conclude that:
A. despite the increase in price, quantity demanded rose due to some other factor changing. B. the demand for a college education is positively sloped. C. this situation has nothing to do with the law of demand. D. the law of demand is invalid.