An increase in wealth that doesn't affect labor supply would cause the IS curve to ________ and the FE line to ________.
A. shift up and to the right; shift left
B. shift up and to the right; be unchanged
C. shift down and to the left; be unchanged
D. shift down and to the left; shift left
Answer: B
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Suppose that the quantity of staplers demanded falls from 10,000 per week to 8500 . Use the midpoint formula to calculate the percentage change in quantity demanded
What will be an ideal response?
Which of the following would reduce the supply of an athletic trainer's services at today's wage rate, other things constant?
a. a reduction in the individual's income from other sources b. an improvement in the quality of the work environment c. an increase in the amount of control the trainer has over the use of time on the job d. a trainer's future earning possibilities go down due to a new negative image associated with this work e. an increase in the trainer's preference for this type of work
A change in demand cannot be caused by a change in
a. tastes b. population c. the prices of other goods d. expectations of future prices e. the price of the good itself
Which of the following factors is always present in consumer decision making?
a. taxes b. high prices c. scarcity d. changing consumer tastes e. cost-of-living adjustments to income