Related to the Economics in Practice on p. 79: If the supply of generators decreased and the equilibrium price of generators decreases, the demand for generators ________ and total revenue from the sale of generators ________.
A. may have increased, decreased, or stayed the same; will decrease
B. may have increased; decreased, or stayed the same; may increase, decrease, or stay the same
C. decreased; will decrease
D. increased; may increase, decrease, or stay the same
Answer: C
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Refer to Figure 11.5. A decrease in the marginal propensity to import is best illustrated by diagram
A) A. B) B. C) C. D) D.
According to extreme monetarists, monetary policy affects
A. Aggregate demand, real output, and real interest rates, with possible effects on prices and nominal interest rates. B. The velocity of money and level of employment. C. Aggregate demand, prices, and nominal interest rates only. D. Real output, investment, and the money supply.
Rent control laws are imposed when city officials believe landlords have been exploiting tenants. Which of the following criteria are they using to guide their actions?
A. growth B. stability C. efficiency D. equity
By shutting down when price is less than average variable cost at the profit-maximizing level of output, a perfectly competitive firm will limit its losses to its:
A) total variable costs. B) total costs. C) total fixed costs. D) marginal costs.