Which of the following will cause the demand curve for a good to shift to the right?
a. Decrease in income for a normal good.
b. Increase in the price of a complementary good.
c. Decrease in the price of the good.
d. Increase in the price of a substitute good.
e. Expectation of a future price decline.
d
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A student wrote: "A production quota is inefficient because it results in overproduction
At the quota quantity, marginal social cost is equal to the market price and marginal social benefit is less than the market price, so marginal social cost exceeds marginal social benefit." If you were the instructor, how would you correct this statement?
A coffee shop sells a small cup of coffee at $3, while a large cup, which is twice as big, at $5. This is an example of
A) first-degree price discrimination. B) second-degree price discrimination. C) third-degree price discrimination. D) actual cost differences.
In the long run, a decrease in the money supply growth rate
a. shifts the short-run Phillips curve left so inflation returns to its original rate. b. shifts the short-run Phillips curve left so unemployment returns to its natural rate. c. Both A and B are correct. d. None of the above is correct.
Which of the following would constitute an act of investment by a household, as economists use the term?
A. purchasing 100 shares of Microsoft stock B. building a new construction vacation home C. borrowing money from the bank to pay for a vacation cruise D. buying a corporate bond