Explain the difference between a change in quantity demanded and a change in demand
What will be an ideal response?
A change in quantity demanded of a product is caused by a change in the price of the product. It is represented by a movement along the product's demand curve. A change in demand for a product is caused by a change in a variable other than the price of the product. It is represented by a shift of the demand curve.
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General equilibrium refers to
A. examining markets without specific information. B. finding equilibrium from general information. C. pricing goods at their shadow price. D. all of these. E. none of these answer options are correct.
Refer to Figure 10.7. A movement from point C to point A could be caused by
A) a negative demand shock. B) a decrease in the term premium investors expect in the future. C) a decrease in the default-risk premium. D) a decrease in the expected rate of inflation.
Which of the following headlines is more closely related to what microeconomists study than to what macroeconomists study?
a. Unemployment rate falls from 7.5 percent to 7.3 percent. b. Real GDP falls by 0.4 percent in the third quarter. c. Inflation was 2.4 percent last year. d. The price of gasoline rises due to rising oil prices.
Under a floating exchange-rate system, an increase in the international demand for electronic appliances manufactured in Japan will result in
A. a reduction of international reserves held by the central bank of Japan. B. an appreciation of the yen vis-à-vis other currencies. C. deflation in the Japanese economy. D. an increase in Japan's trade deficit with other countries.