Suppose that in 2011, 4 million plasma TVs were purchased at $950 each, while in 2012, 3 million plasma TVs were purchased at $800 each. What might have caused this change?
A) The price of LCD TVs (a substitute for plasma TVs) fell.
B) The price of LCD TVs (a substitute for plasma TVs) rose.
C) Plasma TV manufacturing technology decreased.
D) Plasma TV manufacturing technology increased.
A
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One purpose of discretionary fiscal policy is to
A. increase government spending during a recession. B. reduce inflation during an expansion. C. reduce inflation during a recession. D. increase taxes during an expansion.
Which of the following will lead to a decrease in the firm's short-run demand for labor?
A) an increase in the price of the final product B) an increase in price of the final product's substitute good C) a decline in labor productivity D) an increase in the number of buyers for the final product
As the dollar appreciates, the dollar price of imported goods ___________ ultimately shifting the United States AD curve to the _______________
A) rises; right B) rises; left C) falls; right D) falls; left
A monopolistic competitor takes a loss only in the ______________.
Fill in the blank(s) with the appropriate word(s).