As the use of DVDs becomes more widespread, we would expect all of the following except one. Which is the exception?
a. The prices of CDs will decrease.
b. The demand curve for CD players will shift leftward.
c. The supply curve of CD players will shift rightward.
d. The demand curve for CDs will shift leftward.
e. Firms will move their resources away from CD production to DVD production.
C
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Is each of the following situations an example of savings, investment, or neither? In each case explain your choice
(a) A savings and loan association lends money for the purchase of "junk" (not backed) bonds. (b) John's income is $25,000 per year; $22,000 is spent on consumer goods and the remaining money is used purchase stock in the local electric company. (c) Just before retirement a couple sells their shares of Pacific Bell stock and puts the proceeds in a bank savings account. (d) The city of Los Angeles rebuilds highways after an earthquake. (e) In order to improve the income earning potential of current welfare recipients, the federal government increases the size of income transfers.
If consumers become less confident and begin to borrow and spend less, what will happen in the dynamic AD/AS model?
A. The short-run aggregate supply curve will shift downward. B. The long-run aggregate supply curve will shift to the left. C. The aggregate demand curve will shift to the left. D. The aggregate demand curve will shift to the right.
An increase in Social Security payments to retired persons has what effect on equilibrium income?
A. GDP will fall. B. GDP will rise. C. GDP will remain the same. D. GDP will fall by less than the increase in payments.
Refer to the information provided in Figure 20.4 below to answer the question(s) that follow.
Figure 20.4Refer to Figure 20.4. The domestic price of a leather wallet is $20. With free trade the price of a leather wallet is $10 and after a tariff is imposed the price is $15. After the tariff is imposed, this country will import ________ leather wallets.
A. 50 B. 100 C. 150 D. 200