If the price of a good increases, ________
A) the budget constraint shifts to the right
B) the budget constraint shifts to the left
C) the consumer surplus increases
D) the consumer surplus decreases
D
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The real exchange rate is defined to be the:
A. value of goods in one nation relative to the value a similar set of goods in another country. B. rate people exchange goods and services in a domestic market. C. rate at which firms in different nations would be willing to exchange goods. D. value of goods in one nation relative to the value the same set of goods in another country.
Say’s law and Keynes’ law can both be illustrated in the ______________ model.
a. input/output b. circular flow c. AD/AS d. neoclassical
The quantity of real GDP supplied decreases if the price level ________ because it ________ profits
A) falls; decreases B) rises; increases C) rises; decreases D) falls; increases E) None of the above answers is correct because the AS curve is vertical so that the quantity of real GDP supplied does not change when the price level changes.
Average total cost minus average variable cost ________ as output increases because ________ as output increases
A) decreases and then increases; marginal cost initially decreases and then increases B) decreases; average fixed cost decreases C) decreases; marginal returns diminish D) decreases; economies of scale are present