The demand for Ben & Jerry's ice cream is ________ than is the demand for all ice cream because ________.
A. more price elastic; Ben & Jerry's has fewer available substitutes
B. more price elastic; the scope of the market for Ben & Jerry's is less broadly defined
C. less price elastic; the scope of the market for Ben & Jerry's is less broadly defined
D. less price elastic; Ben & Jerry's has fewer available substitutes
Answer: B
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Use the following figure to answer the next question.
Suppose the economy is currently at full employment with aggregate demand curve AD2. A further increase in consumption and investment spending will cause ________.
A. demand-pull inflation, and the new equilibrium output will be more than Q2 B. cost-push inflation, and the new equilibrium output will be less than Q2 C. demand-pull inflation, and the new equilibrium output will be less than Q2 D. cost-push inflation, and the new equilibrium output will be more than Q2
Currently, the U.S. national income and product accounts (NIPA) use what type of price index to calculate real GDP?
A) Fixed-weight B) Variable-weight C) Chain-weight D) Heavy-weight
Maximum Feasible Hourly Production Rates of EitherComputers or Bicycles Using All Available ResourcesProductUnited StatesCanadaComputers810Bicycles42Refer to the above table. Assuming constant opportunity costs, the opportunity cost of producing a bicycle in the United States is ________ while the opportunity cost of producing a bicycle in Canada is ________.
A. 2 computers; 5 computers B. 5 computers; 2 computers C. 8 computers; 10 computer D. 4 computers; 10 computers
Refer to the graph shown. If the price of this product fell from $5.00 to $2.50 (because of a price ceiling or a shift in demand), producer surplus would fall from:
A. 2,000 to 500. B. 500 to 250. C. 1,000 to 500. D. 1,000 to 250.