The quantity of a good demanded tends to increase as its price falls because:
a. a decrease in price shifts the demand curve to the right
b. a decrease in price shifts the demand curve to the left.
c. a decrease in price shifts the supply curve to the right.
d. a decrease in price leads consumers to substitute toward this now relatively cheaper product.
d
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Which of the following shifts the demand curve for movies leftward?
A) a decrease in the price of NetFlix, a substitute for movies B) a decrease in the price of movie tickets C) an increase in movie star salaries D) an increase in incomes, assuming movies are a normal good E) an increase in the price of movie tickets
Technical innovation spurs economic growth because it
A) increases labor productivity. B) increases the stock of capital goods. C) provides more powerful means of production. D) does all of the above.
Which of the following is an example of a positive economic statement?
A) The unemployment rate last month was 5.4 percent. B) The unemployment rate last month was too high. C) Because of the high unemployment rate last month the government should increase government spending. D) The unemployment rate should be measured differently because it doesn't include students who can't find jobs.
Stagflation refers to
A) a reduction in inflation. B) a simultaneous reduction in inflation and reduction in unemployment. C) a liquidity trap. D) reduction in the price level and a reduction in the unemployment rate. E) none of the above