According to your textbook, the notion of price "gouging" is problematic because
A) the higher prices are normally the result of decreases in supply and increases in demand.
B) economists believe higher prices are always better than lower prices.
C) economists want businesses to make high profits.
D) None of the above.
A
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Each point on the demand curve reflects
A) all the wants of a given household. B) the highest price consumers are willing and able to pay for that particular unit of a good. C) the highest price sellers will accept for all units they are producing. D) the lowest-cost technology available to produce a good.
By definition, economics is the study of
A) how to make money in a market economy. B) the choices people make to attain their goals, given their scarce resources. C) how to make money in the stock market. D) supply and demand.
If the Fed chooses to target the money supply, it
a. cannot at the same time control the interest rate b. can only do so if the interest rate is targeted as well c. gives up the opportunity of determining the legal reserve requirement d. gives up the opportunity of determining the discount rate e. gives up the opportunity of determining the federal funds rate
In the graph showing the Phillips curve from 2006 to 2016, we can see that during the period following the 2008 financial crisis, the Phillips curve ______.
a. shifted considerably to the left
b. shifted considerably to the right
c. fluctuated wildly
d. remained fairly stable