If people expect the price of packaged coffee to rise next week, coffee demand will
a. decrease now
b. increase now
c. stay the same now and increase next week
d. stay the same now and decrease next week
e. stay the same now and next week
B
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If a market begins in equilibrium and then the demand curve shifts leftward, a
A) surplus is created, which is eliminated by a rise in price. B) shortage is created, which is eliminated by a rise in price. C) shortage is created, which is eliminated by a fall in price. D) surplus is created, which is eliminated by the supply curve shifting leftward. E) surplus is created, which is eliminated by a fall in price.
Once the Phillips curve has shifted down, the economy is ________ because ________
A) better off; every unemployment rate becomes associated with a higher inflation rate B) better off; every inflation rate becomes associated with a lower unemployment rate C) worse off; every inflation rate becomes associated with a higher unemployment rate D) worse off; every unemployment rate becomes associated with a lower inflation rate
Economists make the general assumption that:
A. people are rational, but their behavior doesn't always follow this assumption. B. people are irrational, but there are some correlations in behavior that have been proven. C. people are rational, but this doesn't really ever resemble reality. D. people are irrational, but this is too difficult to put into a model.
The principal-agent problem arises because the agent's objectives differ from those of the principal
a. True b. False