Suppose that supply increases and demand decreases. What effect will this have on price and quantity?
A. Price will decrease and quantity will increase.
B. Price will decrease and quantity will decrease.
C. Price will increase and quantity may rise or fall.
D. None of the statements associated with this question are correct.
Answer: D
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The marginal propensity to consume equals
A) consumption expenditure divided by the change in disposable income. B) the change in consumption expenditure divided by disposable income. C) the change in consumption expenditure divided by the change in disposable income. D) consumption expenditure divided by disposable income. E) the change in autonomous consumption divided by the change in induced consumption.
The table above shows the exchange rates between various currencies and the U.S. dollar. Between 2015 and 2016, the U.S. dollar ________ against the Euro and ________ against the Japanese yen
A) depreciated; depreciated B) appreciated; appreciated C) appreciated; depreciated D) depreciated; appreciated
The main difference between the price-quantity graph of a perfectly competitive firm and a monopoly is
A) that the competitive firm's demand curve is horizontal, while that of the monopoly is downward sloping. B) that a monopoly always earns an economic profit while a competitive company always earns only normal profit. C) that a monopoly maximizes its profit when marginal revenue is greater than marginal cost. D) that a monopoly does not incur increasing marginal cost.
What happens to the Phillips curve when future inflation is expected to rise?
A. The curve shifts to the right. B. The curve becomes horizontal. C. The curve shifts to the left. D. The Phillips curve is unaffected.