Consider the market for grapes. An increase in the wage paid to grape pickers will cause the:
a. demand curve for grapes to shift to the right, resulting in a higher equilibrium price for grapes and a reduction in the quantity consumed.
b. demand curve for grapes to shift to the left, resulting in a lower equilibrium price for grapes and an increase in the quantity consumed.
c. supply curve for grapes to shift to the left, resulting in a lower equilibrium price for grapes and a decrease in the quantity consumed.
d. supply curve for grapes to shift to the left, resulting in a higher equilibrium price for grapes and a decrease in the quantity consumed.
d
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Which of the following is not one of the ways that the German government ended the hyperinflation of the 1920s?
A) replacing the existing mark with a new mark B) negotiating a new agreement with the Allies (the United States, Great Britain, France, and Italy) that reduced its reparations payments C) reducing government expenditures and raising taxes to balance its budget D) raising the required reserve ratio to reduce bank loans
Rates of inflation in the hundreds or thousands of percent per year are known as
A) super inflation. B) megainflation. C) hyperinflation. D) overinflation.
If you receive a gift whose market price is $20, but you consider it to be worth only $10, then:
A. there is a $10 or 50 percent value gain. B. there may or may not be a value loss. C. there is a $10 or 50 percent value loss. D. you can be relatively certain the giver was a sibling or other close relative.
Starting from long-run equilibrium, a large tax increase will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. recessionary; lower; potential B. expansionary; lower; potential C. expansionary; higher; potential D. recessionary; lower; lower