If a demand curve shifts left, it implies
A) as a group, consumers are willing and able to pay less for the product.
B) as a group, consumers are willing and able to pay more for the product.
C) government has regulated how many people can purchase the product.
D) the profit motive of the firms is making the price too high.
A
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Suppose that taxes on labor are increased by 10 percent and workers respond by working 2 percent fewer hours. It can be said that
A. The tax elasticity of the labor supply is 5. B. The labor supply is elastic. C. Employers will face lower unit costs for each worker hired. D. The tax elasticity of the labor supply is 0.2.
The aggregate demand curve indicates the relationship between:
a. the real wage rate and the quality of resources demanded by producers of goods and services. b. the interest rate and the amount of loanable funds demanded by borrowers. c. the natural rate of unemployment and the demand for goods and services when the economy is in long-run equilibrium. d. the general price level and the aggregate quantity of goods and services demanded.
The simplified Keynesian model
A. holds the price level constant. B. assumes investment and saving are always equal. C. assumes unemployment is unrelated to real GDP. D. holds real GDP constant.
A college student decides to spend the afternoon watching three movies rented from Red Box. The cost of each movie is $1. The student was willing to pay $4 to rent each of the first two movies and $2 to rent the third movie. What was the marginal benefit received by the student when renting the 2nd movie?
A. $8 B. $1 C. $4 D. $2