There is an increase in incomes. What happens in the market for steak?
A) The equilibrium price falls, and the equilibrium quantity rises.
B) The equilibrium price rises, and the equilibrium price falls.
C) The equilibrium price and quantity rise.
D) The equilibrium price and quantity fall.
Ans: C) The equilibrium price and quantity rise.
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Which of the following correctly describes the automatic mechanism through which the economy adjusts to long-run equilibrium?
A) the rightward shift of the aggregate demand curve that occurs during a recession B) the leftward shift of the short-run aggregate supply curve that occurs after a recession C) the rightward shift of the short-run aggregate supply curve that occurs after a recession D) the leftward shift of the aggregate demand curve that occurs after a recession
In LDCs, persistent poverty occurs because of preference for _______ , which results in ___________
a. large families; low levels of capital goods production b. more consumption today; less consumption tomorrow c. high birth rates; high death rates d. high birth rates; low death rates e. culture; an absence of assimilation
Marginal profit is the slope of the total profit curve
a. True b. False Indicate whether the statement is true or false
The difference between a firm's profit-maximizing quantity and the quantity that minimizes average cost is called:
a. economic profit. b. excess capacity. c. economic rent. d. excess supply.