If other factors remain unchanged, technological progress in producing good A definitely will lead to
A. an increase in the market clearing price of good A and a decrease in the equilibrium quantity of good A.
B. a decrease in both the market clearing price and the equilibrium quantity of good A.
C. an increase in both the market clearing price and the equilibrium quantity of good A.
D. a decrease in the market clearing price of good A and an increase in the equilibrium quantity of good A.
Answer: D
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In the above figure, the curve's slope is
A) positive and is becoming steeper. B) positive and is becoming less steep. C) negative and is becoming steeper. D) negative and is becoming less steep.
An open-market sale of Treasury bills by the Fed not only reduces the money supply but also
A. Lowers T-bill prices and raises interest rates. B. Drives up T-bill prices and pushes down interest rates. C. Lowers T-bill prices and pushes down interest rates D. None of these.
Economic models are most often composed of diagrams and equations
a. True b. False Indicate whether the statement is true or false
Luxury items tend to have ________ demand, and necessities tend to have ________ demand.
A. relatively inelastic; elastic B. perfectly elastic; perfectly inelastic C. unit elastic; perfectly inelastic D. relatively elastic; inelastic