The above figures show the market for gasoline. Which figure shows the effect of an increased preference for cars that are smaller and more fuel efficient?
A) Figure A
B) Figure B
C) Figure C
D) Figure D
B
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Ceteris paribus, deficit spending results in higher interest rates, which can
A) ultimately have a positive impact on productivity gains and society's standard of living. B) accelerate growth in investment spending. C) crowd out private investment. D) increase the wealth of future generations.
The fact that indifference curves are downward sloping
A) is not true. B) follows from the fact that more is preferred to less. C) follows from the property that the consumer likes diversity in his or her consumption bundle. D) follows from the property that consumption and leisure are normal goods.
Unions often have the power to push wages above competitive levels
a. True b. False Indicate whether the statement is true or false
A situation in which output decreases while prices increase is often referred to as:
A. inflation. B. negative economic growth. C. a recession. D. stagflation.