Suppose that iPhones are normal goods. If the income of iPhone users decreases, you predict that in the market for iPhones
A. both equilibrium price and quantity will increase.
B. both equilibrium price and quantity will fall.
C. equilibrium price will increase and quantity will decrease.
D. equilibrium price will fall but quantity will increase.
Answer: B
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Moving from one point on the production possibilities frontier to another ________
A) involves a tradeoff but does not incur an opportunity cost B) involves an opportunity cost but no tradeoff C) involves a tradeoff and incurs an opportunity cost D) involves no tradeoff but it does incur an opportunity cost
Based on the work of economist A.W. Phillips, economists concluded that
A) there is no trade-off between inflation and unemployment. B) high inflation rates are associated with low unemployment rates. C) unemployment can be effectively combated by raising wages. D) higher rates of inflation are associated with higher rates of unemployment.
According to the graph shown, at a price of $5, there is a:
A. shortage of 10.
B. shortage of 20.
C. shortage of 30.
D. surplus of 20.
When a banker accepts a deposit of $1,000 in cash and puts $200 aside as required reserves and then makes a loan of $800 to a new borrower, this set of transactions
a. decreases the money supply by $1,000. b. decreases the money supply by $200. c. does not change the money supply. d. increases the money supply by $200. e. increases the money supply by $800.