Last year a firm made 1,000 units of its product available at a price of $5 per unit. This year the firm will still make 1,000 units available, but only if the price is $7 per unit. What is most likely to have happened?
a. Supply has increased
b. Supply has decreased
c. Demand has decreased
d. Quantity demanded has increased
e. Quantity supplied has increased
b
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The multiplier effect refers to the fact that a change in spending (aggregate demand) will
What will be an ideal response?
Using Figure 1 above, if the aggregate demand curve shifts from AD1 to AD2 the result in the short run would be:
A. P1 and Y2. B. P3 and Y1. C. P2 and Y2. D. P2 and Y3.
The copper, aluminum, cement, and industrial alcohol industries are examples of:
A. interproduct competition. B. homogeneous oligopoly. C. monopolistic competition. D. differentiated oligopoly.
Answer the following statement true (T) or false (F)
1) Human beings consume more both in absolute terms and on a per capita basis than they did 200 years ago. 2) Thomas Malthus argued that increases in living standards tend to reduce birthrates. 3) A total fertility rate of 1.0 is necessary to keep the population constant over time. 4) Most developed countries have fertility rates less than 2.1.