Demand shocks:
A. refer to unexpected changes in the desires of households and businesses to buy goods
and services.
B. refer to unexpected changes in the ability of firms to produce and sell goods and services.
C. always have a negative impact on the economy.
D. cause fewer short-run fluctuations than supply shocks.
Answer: A
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When Italy buys Boeing jets, the price Italy pays is ________ if it produced its own jets, and the price Boeing receives is ________ than it could receive from an additional U.S. buyer
A) lower than; higher B) higher than; higher C) the same as; higher D) lower than; lower E) higher than; lower
In a perfectly competitive market, the price in the long run:
A) will always be more than the minimum average total cost of the industry. B) will always be less than the minimum average total cost of the industry. C) will always equal the minimum average total cost of the industry. D) will always equal the average fixed cost of the industry.
If point A on an indifference curve lies higher (measured vertically) than point B on the same curve, Point A automatically represents higher total utility than point B
a. True b. False Indicate whether the statement is true or false
The most important reason for why some people have higher incomes than others is
A. employment discrimination. B. differences in wages and salaries. C. property income. D. government transfer payments.