Macroeconomics studies the behavior of aggregates while microeconomics studies the behavior of individual decision-making units
a. True
b. False
A
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Indifference curves shift or rotate
A) only when income changes. B) only when prices change. C) when either income or prices change. D) with none of the above because changes in income and prices do not shift indifference curves.
According to classical theory, any changes in aggregate demand will
A) have no affect on prices or real Gross Domestic Product (GDP). B) lead to changes in both real Gross Domestic Product (GDP) and the price level. C) lead to changes in the price level. D) lead to changes in real Gross Domestic Product (GDP), but not in the price level.
The figure above shows Sam's budget line. Which of the following equals the slope of Sam's budget line?
A) Y/Pc B) Y/Pg C) (Pc/Pg) D) (Pg/Pc)
Which of the following is TRUE about monopolistic competition?
A) One firm serves as the entire industry. B) A small number of firms serve the entire market. C) It is competition among many firms producing similar but differentiated products. D) The pattern of production and trade is difficult to predict. E) It enjoys no economies of scale.