If the demand for gasoline becomes more elastic over time,
a. the demand curve will shift out.
b. the demand curve will become flatter.
c. other things being equal, the equilibrium price of gasoline must fall.
d. other things being equal, the equilibrium quantity of gasoline must fall.
b
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The Bureau of Labor Statistics (BLS) compiles information about employment by
A) performing a census of every household in the nation. B) performing a quarterly survey 6,000,000 households. C) performing a monthly survey of 60,000 households. D) determining the average estimate of labor market specialists around the nation. E) contacting each of the 50 states' Departments of Labor.
The "information barrier" that is the root cause of business cycles in the Lucas model is that
A) workers observe the prices of what they personally buy, but cannot observe the general price level. B) workers do not know when changes in the price level mean changes in the prices of the goods they buy. C) firms do not know when changes in the price of the good they sell matches changes in the price level and thus their marginal cost. D) firms do not know if a change in the price level will have any effect on their marginal cost and thus their willingness to supply.
A(n) _____ is an increase in wealth caused by an appreciation of the value of an asset that an individual or corporation owns
a. inflationary gain b. profit c. capital gain d. accelerated appreciation
A price ceiling set below a market equilibrium price causes
A) a shortage. B) a surplus. C) producers to receive higher prices. D) consumers to pay higher prices.