Using Figure 1 above, if the aggregate demand curve shifts from AD3 to AD2 the result in the long run would be:
A. P1 and Y2.
B. P2 and Y1.
C. P3 and Y1.
D. P3 and Y2.
Answer: D
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Government provision of goods and services that cannot easily be provided through markets because it is difficult to establish a one-to-one link between payment and consumption of the good is referred to as the
a. productive function of government. b. protective function of government. c. construction function of government. d. income redistribution function of government.
Which of the following would be primarily determined in the resource market?
A. The amount of money in circulation. B. The price of compact discs. C. The wage rates for electricians. D. The number of automobiles produced.
The profit-maximizing level of employment by the monopsonist in the labor market shown below will be:
A. A
B. B
C. C
D. D
According to the graph shown, if the market goes from equilibrium to having its price set at $10:
A. seven fewer units will be exchanged. B. consumer surplus will decrease. C. deadweight loss will occur. D. All of these are true.