A situation in which output decreases while prices increase is often referred to as:
A. inflation.
B. negative economic growth.
C. a recession.
D. stagflation.
Answer: D
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"The price of digital cameras fell because of improvements in production technology. As a result, the demand for non-digital cameras decreased
This caused the price of non-digital cameras to fall; as the price of non-digital cameras fell the demand for non-digital cameras decreased even further." Evaluate this statement. A) The statement is false because the demand for non-digital cameras would increase as the price of digital cameras fell. B) The statement is false because digital camera producers would not reduce their prices as a result of improvements in technology; doing so would reduce their profits. C) The statement is false. A decrease in the price of digital cameras would decrease the demand for non-digital cameras, but a decrease in the price of non-digital cameras would not cause the demand for non-digital cameras to decrease. D) The statement is false because it confuses the law of demand with the law of supply.
The various quantities of all final commodities demanded at various price levels, ceteris paribus, is the
A) LRAS. B) production possibilities curve. C) aggregate demand curve. D) aggregate supply curve.
The Trading Desk's open market operations
A) are confined within a one-hour interval each weekday morning. B) are confined within a six-hour interval each weekday morning. C) occur throughout each day. D) occur once a week.
Since the marginal product of labor equals the change in the quantity of output divided by the change in the quantity of labor, it stands to reason that:
a. a firm would never operate in the range where marginal product is negative. b. a firm would never operate in the range where marginal product is decreasing. c. marginal product will continually increase as the firm produces more. d. there is no predictable relationship between marginal revenue and marginal cost.