Suppose in the year 2000 Ken earned $60,000 per year and that in 2015 he earned $78,000 per year. If the CPI in the year 2000 was 172.2 and in 2015 was 236.7, which of the following statements is correct?
a. Ken's standard of living got better from 2000 to 2015
b. If Ken had earned $81,000 in 2015, his standard of living would have improved relative to his income in 2000.
c. Ken would have needed to earn $87,000 or more in 2015 for his standard of living to have improved relative to his income in 2000.
d. If Ken had earned $83,000 in 2015, his standard of living would have improved relative to his income in 2000.
d
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The downward slope of a demand curve
A) represents the law of demand. B) shows that as the price of a good rises, consumers increase the quantity they demand. C) indicates how the quantity demanded changes when incomes rise and the good is a normal good. D) indicates how demand changes when incomes rise and the good is a normal good. E) indicates how demand changes when the price changes and the good is a normal good.
Why does a price ceiling set below the equilibrium price of a good lead to a shortage of the good in the market?
What will be an ideal response?
In the long run, a monopolistically competitive firm will find
a. its demand curve shifting until price equals average total cost b. its cost curve shifting until price equals average total cost c. its demand curve shifting until marginal revenue equals marginal cost d. its cost curve shifting until marginal revenue equals marginal cost e. no changes in its demand or cost curves if it is earning an economic profit
Which of the following would most likely cause the production possibilities curve for DVDs and food to shift outward?
a. A choice of more food and more DVDs. b. A choice of more food and less DVDs. c. A choice of more DVDs and less food. d. An increase in the quantity of natural resources.