Refer to Figure 2-10. In the circular flow diagram, economic agents M represent
A) product markets. B) firms. C) factor markets. D) households.
D
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Which of the following would cause the level of income to change by the greatest amount, ceteris paribus?
A. A reduction in personal income taxes of $10 billion. B. An increase in Social Security payments of $10 billion. C. An increase in defense spending of $10 billion. D. All of the other choices have equal impacts on the level of income.
A major characteristic of monopolistic competition is that prices will be _____.
(A) Unrelated to the type of competition. (B) Higher than in a true monopoly. (C) Higher than in perfect competition. (D) Lower than in perfect competition.
?
In Exhibit 3-16, if the market price of chairs is initially $15, a movement toward equilibrium would require:
A. ?no change, because an equilibrium already exists. B. ?the price to fall below $15 and both the quantity supplied and the quantity demanded to fall. C. ?the price to remain the same, but the supply curve to shift to the left. D. ?the price to fall below $15, the quantity supplied to fall, and the quantity demanded to rise.?
The law of demand implies that the demand curve is Question 25 options:
A. downward sloping. B. upward sloping. C. downward sloping at high prices and upward sloping at low prices. D. upward sloping at high prices and downward sloping at low prices.