As the LM curve becomes steeper, an unexpected decrease in consumer confidence
A) will cause a relatively large increase in output and relatively large increase in the interest rate.
B) will cause a relatively small increase in output and relatively small increase in the interest rate.
C) is more likely to cause stock prices to rise.
D) is more likely to cause stock prices to fall.
C
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The production possibilities frontier separates ________
A) the goods and services that people want from those that they do not want B) the types of goods that can be attained from those that can't be attained C) the quantities of goods and services that can be produced from those that cannot be produced D) the combinations of goods that people value and those that they don't
Under monopsony, marginal factor cost is
A) equal to the wage rate. B) below the wage rate but increases as more workers are hired. C) greater than the wage rate. D) downward sloping.
Firms in perfect competition will leave the industry if they
a. suffer short-run losses b. suffer losses, even if they are covering variable costs in the short run c. suffer long-run losses d. earn a normal profit e. earn a zero economic profit
Assuming that hamburgers and hot dogs are substitutes, an increase in the price of hamburgers, other things being equal, results in a:
a. rightward shift in the demand curve for hot dogs. b. leftward shift in the demand curve for hamburgers. c. rightward shift in the demand curve for hamburgers. d. leftward shift in the demand curve for hot dogs.