If prices and wages are inflexible downward, a decrease in aggregate demand will:
A. reduce the price level but not real output.
B. increase short-run aggregate supply.
C. decrease short-run aggregate supply.
D. reduce real output but not the price level.
D. reduce real output but not the price level.
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Jill and Jed have individual demand curves for tennis rackets given in the table above and are the only two demanders in the market. What is the market quantity demanded at the price of $30?
A) 2 B) 5 C) 11 D) 18
When a consumer is impatient, his indifference curves for current and future consumption
a. are flatter than the budget line at the endowment point. b. must be straight lines. c. have absolute slopes less than 1 along the 45° line. d. have absolute slopes greater than 1 along the 45° line.
Ronaldo's Foods considered building a store in a new location. The owners and their accountants decided that this was not the profitable thing to do. However, soon after they made this decision, both the interest rate and the cost of building the store changed. In which case do these changes both make it more likely that they will now build the store?
a. Interest rates rise and the cost of building the store rises. b. Interest rates rise and the cost of building the store falls. c. Interest rates fall and the cost of building the store rises. d. Interest rates fall and the cost of building the store falls.
According to the Coase theorem, transaction costs have to be ______.
a. taxed b. subsidized c. low d. high