An increase in the reserve supply
a. will result in inflation if the unemployment rate is high.
b. causes interest rates to rise.
c. shifts the aggregate demand curve inward.
d. will probably cause inflation if the economy is at potential GDP.
d
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In consumer equilibrium: a. the average utility from each dollar spent is the same
b. total utility cannot be increased by reallocating spending among the goods consumed. c. total utility obtained from the consumption of each product is at a maximum. d. the marginal utility from the last unit of each good consumed is the same.
The questions of what to produce, how to produce, and for whom are answered by
A. free-market economies. B. economies that are a mixture of planning and markets. C. command economies. D. all economic systems in some manner.
In the long run, the economic profits for a monopolistically competitive firm will be
A. slightly more than the profits of a purely competitive firm. B. the same as the profits for a purely competitive firm. C. the same as the profits for a monopolist. D. slightly less than the profits of a monopolist.
The above figure shows the market for apples. If a consumer group convinces the government to set a maximum price of $2 per pound, then
A) 300 pounds of apples will be sold at $2. B) no apples will be supplied. C) no apples will be demanded. D) there will be a shortage of 100 pounds of apples.