Refer to the information provided in Figure 3.7 below to answer the following question(s).
?Figure 3.7Refer to Figure 3.7. If pizza and burritos are substitutes, a decrease in the price of burritos will cause a movement from Point B on demand curve D2 to
A. Point A on demand curve D2.
B. demand curve D1.
C. Point C on demand curve D2.
D. demand curve D3.
Answer: B
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The steeply upward sloping yield curve in the figure above indicates that ________ interest rates are expected to ________ in the future
A) short-term; rise B) short-term; fall moderately C) short-term; remain unchanged D) long-term; fall moderately
Why do we analyze the steady state in the Malthusian model?
A) Because that is all we know how to do. B) Because there is a non-steady state that is not interesting. C) Because this is the Pareto optimum. D) Because the long run equilibrium of the model is the steady state.
Ceteris paribus, expanding loans made by the commercial banking system: a. changes the composition, but not the magnitude, of the money supply. b. decreases the money supply
c. increases the money supply. d. would help to stabilize an economy experiencing rapid inflation.
In pure competition, price is determined where the industry:
A. average total cost equals total variable costs. B. total cost is greater than total revenue. C. demand and supply curves intersect. D. demand intersects the firm's marginal cost curve.