Suppose the demand for strawberries rises sharply, resulting in an increased price for strawberries. As it relates to strawberry pickers, we could expect the:
A. MRP curve to shift to the right.
B. MRP curve to shift to the left.
C. MRC curve to shift downward.
D. MP curve to shift downward.
Answer: A
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Stagflation occurs when short-run aggregate supply decreases
Indicate whether the statement is true or false
If each additional unit of capital increases a firm's yearly output by a smaller amount than the previous unit of capital, and other inputs are held constant, then the firm is experiencing
a. diminishing returns to scale b. negative marginal productivity of capital c. diminishing marginal productivity of capital d. capital depreciation e. diminishing marginal productivity of labor
In Exhibit 3, what area(s) represent consumer surplus gains from imports after free trade is allowed?
a. a
b. b
c. a and b
d. b and d
When Pepsi becomes more expensive relative to other beverages, people will purchase less Pepsi. This observation is known as the:
A. diamond-water paradox. B. law of diminishing marginal utility. C. substitution effect. D. income effect.