As we move downward along a demand curve for apples,
A) consumer well-being decreases.
B) the marginal utility of apples decreases.
C) the marginal utility of apples increases.
D) Both A and B are true.
E) Both A and C are true.
B
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The difference between Capitalism and Socialism is that
a. Capitalism is concerned more about how to slice up the "pie" b. Socialism is concerned with making the "pie" as large as possible c. Capitalism is concerned with making the "pie" as large as possible d. Both a and B
What is the impact on the foreign exchange rate?
a. The euro depreciates in value compared to the U.S. dollar.
b. The dollar price of euros increases from $1.50 to $1.90.
c. The euro can buy a greater number of units of dollars than before.
d. The dollar price of euros decreases from $1.50 to $1.00.
Figure 33-5
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Over a five-year period, economists observed that the unemployment–inflation relationship appeared as in Figure 33-5. Economic theory would conclude that the period
A. was dominated by supply shocks such as increased energy and food costs. B. was affected by both supply and demand shocks, with demand shocks dominating. C. was dominated by demand-side changes. D. cannot be explained because the relationship is the opposite of what the Phillips curve would predict.
Related to the Economics in Practice on page 102: Which of the following best explains why demand is often less elastic in the short run than it is in the long run?
A. In the short run, consumers have less access to substitutes. B. Consumers tend to postpone making purchasing decisions as long as possible. C. In the short run, prices can change rapidly, but in the long run they are more stable. D. When demand is elastic, price increases reduce revenue because a small price increase will lead to a large decrease in quantity demanded.