In which of the following situations will market clearing price increase and the equilibrium quantity decrease?
A) an increase in demand with no change in supply
B) an increase in supply with no change in demand
C) a decrease in supply with no change in demand
D) a decrease in demand with no change in supply
C
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A firm produces its product using both capital and labor. When it does not change its capital usage, but doubles its labor input, its output increases by less than 50 percent. Which of the following is the most likely explanation of this finding?
A) the principle of opportunity cost B) the spillover principle C) the principle of diminishing returns D) the marginal principle
A naïve implication of the DD-AA framework is that either fiscal or monetary policy can lead to full employment. Discuss why this view is naïve
What will be an ideal response?
In the past, voting systems in most countries required that you be:
A. white, male, and hold property in order to vote. B. both male and white in order to vote. C. both male and hold property in order to vote. D. male in order to vote.
Although checking deposits are considered money, they are actually
A. fictitious numbers in persons’ checkbooks. B. backed by commodities like gold. C. not very useful for making payments. D. bookkeeping entries in bank balance sheets.