Refer to Figure 2-18. Which of the following could result in a movement from point B to point Z?
a. a change in the price of a restaurant meal
b. a change in the number of restaurant meals demanded
c. a change in income
d. Both a and b are correct.
Answer: c. a change in income
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If actual inflation differs from expected inflation, what is the slope of the aggregate supply curve?
A. The slope is horizontal in the short and long run. B. The slope is vertical in the short and long run. C. The slope is vertical in the short run and upward sloping in the long run. D. The slope is upward sloping in the short run and vertical in the long run.
Economic profit is:
a. total revenues minus variable costs. b. total revenues minus private costs. c. total revenues minus explicit costs. d. total revenues minus total costs.
A country can gain by importing a good that it can make itself if
a. this enables the country to make another good in which it is extremely efficient. b. it has an absolute disadvantage in the good. c. this permits the country to establish comparative advantage in the good. d. All of the above are correct.
What is the best definition of legal tender?
a. a medium of exchange that has been established through custom or tradition b. a medium of exchange that the government has officially declared to be money c. money that is in the form of metallic coins and printed paper d. money that is backed by the gold standard