According to the misperceptions theory, when the aggregate price level is higher than expected,
A) the aggregate quantity of output supplied rises above the full-employment level.
B) the aggregate quantity of output supplied falls below the full-employment level.
C) the aggregate quantity of output demanded falls below the full-employment level.
D) the aggregate quantity of output demanded rises above the full-employment level.
A
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All of the following, except one, would increase the demand for a particular model of a Ford automobile. Assume that this model is a normal good. Which is the exception?
a. an increase in buyers' incomes b. increased prices of other Ford models c. an expected future increase in the price d. an increase in the U.S. population e. a decrease in the price of steel
You won a free ticket to see the latest Star Wars movie this Friday night (which you can costlessly resell for its face value of $15). Your favorite band is also performing on Friday and is your only alternative activity. Friday is your last chance to see either the movie or the band. Tickets to see your favorite band cost $30, and on any given day, you would be willing to pay as much as $50 for a ticket. Based on this information, what is your opportunity cost of going to see the Star Wars movie on Friday?
A. $50 B. $35 C. $30 D. $0
Which of these activities will most likely result in an external benefit?
a. Ted purchases a dilapidated house and cleans up the yard and exterior of the house. b. Tim purchases an iPhone and downloads new apps. c. Terri purchases a new SUV and drives it to work every day. d. Thomas purchases a suit and wears it on his interviews.
Which of the following scenarios would be most likely to cause the shift in the demand of loanable funds from D1 to D0, shown in the following diagram?
a) A decrease in investment tax credits. b) A technological advancement that increases productivity. c) An increase in business taxes. d) The expansion of business regulations.