The graph illustrates the supply of sweaters. As the technology used to produce sweaters improves, the
A) supply of sweaters decreases and the demand for sweaters does not change.
B) supply of sweaters increases and the demand for sweaters does not change.
C) quantity of sweaters supplied increases.
D) quantity of sweaters supplied decreases.
E) supply of sweaters increases and the demand for sweaters increases.
B
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Purchasing power parity explains how the exchange rate will adjust to differences in price levels between two countries
a. True b. False Indicate whether the statement is true or false
The fact that output gaps will not last indefinitely, but will be closed by rising or falling inflation is the economy's:
A. income-expenditure multiplier. B. self-correcting property. C. short-run equilibrium property. D. long-run equilibrium property.
In 2001, Microsoft was found guilty of:
A. using anticompetitive means to maintain and broaden its "Windows" monopoly. B. monopolizing the market for word processing software. C. conspiring with Netscape and Sun to monopolize the market for Internet browsers. D. deliberately pricing Windows 95 and 98 below marginal cost to monopolize the market for operating systems for personal computers.
All of the following factors lead to overconsumption of health care, except:
A. The practice of defensive medicine B. Health insurance that pays most of the health care costs C. Government tax subsidy on employer-financed health insurance D. Rising incomes resulting from economic growth