A decrease in ________ tends to decrease ________ and therefore decrease ________
A) cost; price; supply
B) cost; demand; price
C) demand; price; cost
D) supply; cost; price
C
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Jacqueline, a brilliant new Ph.D. in economics, has turned down many job offers because she hopes eventually to teach at one of the top ten universities in her field. What type of unemployment is she experiencing?
What will be an ideal response?
An increase in household income for a good that is considered normal would
A. cause a movement along the demand curve to a (higher price, lower quantity) point. B. move its demand curve to the right. C. move its demand curve to the left. D. cause a movement along the demand curve to a (lower price, higher quantity) point.
Refer to Figure 26-9. In the figure above suppose the economy is initially at point A. The movement of the economy to point B as shown in the graph illustrates the effect of which of the following policy actions by the Federal Reserve?
A) an increase in the required reserve ratio B) an open market sale of Treasury bills C) an open market purchase of Treasury bills D) a decrease in income taxes
Carlos can produce the following combinations of X and Y: 10X and 10Y, 5X and 15Y, and 0X and 20Y. The opportunity cost of one unit of X for Carlos is
A) 1 unit of Y. B) 2 units of Y. C) 1/2 unit of Y. D) 1/4 unit of Y. E) none of the above