When there is an increase in demand,
A. the demand curve shifts to the right of the original demand curve.
B. the demand curve rotates clockwise.
C. the demand curve shifts to the left of the original demand curve.
D. the demand curve rotates counterclockwise.
E. a lower price has increased the amount of the good that consumers will buy.
Answer: A
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For the last few decades, the labor force participation rates of men have ________, and the labor force participation rates of women have ________
A) fallen; risen B) risen; risen C) fallen; fallen D) risen; fallen
If Jet Cruises chooses to No Ad and Easy Sail then chooses to No Ad, Jet Cruises earns ________ million in net profit and Easy Sail earns ________ million.
Jet Cruises wants to prevent Easy Sail from entering the sailboat market. The above game tree illustrates the different strategies and corresponding payoffs for the two firms. Both Jet Cruises and Easy Sail have the same strategies of advertising (Ad) or not advertising (No Ad). The payoffs represent net profit in millions.
A) $5; $2 B) $2; $4 C) $4; $3 D) $10; $2
In 1979, the Federal Reserve decided to tighten monetary policy in order to reduce inflation, which had risen to double-digit levels. The AD/AS model framework suggests that the short-run effect of this policy was to reduce:
A. neither inflation nor output. B. inflation primarily with little change in output. C. output primarily with little change in inflation. D. both inflation and output.
Economists assume that individuals make informed decisions and act in their own self-interest.
Answer the following statement true (T) or false (F)