The shape of the short run aggregate supply curve is generally believed to be
a) a decreasing function of the price level
b) an increasing function of the interest rate
c) an increasing function of the price level
d) vertical
e) backward-bending
c) an increasing function of the price level
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Refer to Figure 4-7. The figure above represents the market for iced tea. Assume that this is a competitive market. If the price of iced tea is $3, what changes in the market would result in an economically efficient output?
A) The quantity supplied would decrease, the quantity demanded would increase, and the equilibrium price would decrease. B) The price would decrease, quantity demanded would increase, and quantity supplied would decrease. C) The price would decrease, the quantity supplied would increase, and the quantity demanded would decrease. D) The price would decrease, the demand would increase, and the supply would decrease.
The sole owner of an unincorporated business unable to pay its debts
A. may be sued by the people to whom the business owes money. B. may be forced to pay them out of the owner’s own bank account. C. may be forced to sell the owner’s personal property to pay those debts. D. All of these responses are correct.
Some colleges charge all students the same "activity fee.". Suppose that students differ by how many campus activities they engage in. This charge is most like
a. an excise tax which conforms to the benefits principle. b. an excise tax which violates the benefits principle. c. a lump-sum tax which conforms to the benefits principle. d. a lump-sum tax which violates the benefits principle.
In both Gamma and Delta average labor productivity is $40,000 per worker per year. The population of Gamma is 200,000 and the population of Delta is 400,000. Fifty percent of the population in each country is employed. Total output in Gamma is ________ and total output in Delta is ________.
A. $8 billion; $16 billion B. $4 billion; $8 billion C. $100,000; $200,000 D. $2.4 billion; $4.8 billion