Demand-pull inflation is associated with a(n)
a. decrease in the aggregate supply curve
b. increase in the aggregate supply curve
c. increase in the aggregate demand curve
d. decrease in the aggregate demand curve
e. decline in the availability of a productive resource
C
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Assume two people, Tom and Rose, live for two periods and are taxed on consumption in both periods. In period 0, Rose has consumption of 50. In period 1, Rose has consumption of 50. Tom has consumption of 40 in period 0. Use the formula below for lifetime consumption tax liability, R i , to find out what Tom's period 1 consumption must be, to ensure that tax liabilities between the two are equal, if the consumption tax rate is 9% and the rate of interest is 4%,
If Happy Babies sells its baby formula in the United States for 30 percent less than it does in Canada, this is an example of ________.
A) peak-load pricing B) two-part pricing C) third-degree price discrimination D) second-degree price discrimination
When a citizens' group opposes expansion of the prison located in town, the basis of the opposition is that the larger prison will produce
a. a negative externality for the community b. a positive externality for the community c. more jobs in the community d. tax revenue for the community e. improved criminal justice options
The figure below depicts the short-run market equilibrium in a perfectly competitive market and the cost curves for a representative firm in that market. Assume that all firms in this market have identical cost curves.
The long-run market equilibrium quantity in this industry is:
A. 500. B. more than 700. C. 700. D. 300.