Which of the following would cause both an increase in the price level and an increase in real output?
A. An increase in transfer payments.
B. A tax hike.
C. A decrease in government spending.
D. A decrease in production costs.
Answer: A
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If the quantity of wood purchased decreases when the price of wood rises, a graph representing these variables would have
A) time on the vertical axis. B) the slope on the vertical axis. C) a negative slope. D) a positive slope.
The demand curve for a monopolist is:
a. the demand curve for the industry. b. less than the market demand curve. c. below the marginal revenue curve. d. nonexistent. e. the sum of the demand curves of the perfectly competitive firms in the industry.
Restrictions on the importation of tomatoes reduce the supply available to the U.S. domestic market. Studies indicate that the demand for tomatoes is elastic. Compared to a free-trade situation, the import restrictions cause
a. higher tomato prices and an increase in consumer expenditures on tomatoes in the United States. b. lower tomato prices and an increase in consumer expenditure on tomatoes in the United States. c. lower tomato prices and a reduction in consumer expenditure on tomatoes in the United States. d. higher tomato prices and a reduction in consumer expenditure on tomatoes in the United States.
An ____________ identifies all the combinations of capital and labor that can be purchased at a given total cost.
Fill in the blank(s) with the appropriate word(s).