If market supply increases, equilibrium price will:
A. fall, causing a movement along the demand curve.
B. rise and demand will shift to the left.
C. rise, causing a movement along the demand curve.
D. fall and demand will shift to the right.
Answer: A
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The self-correcting tendency of the economy means that falling inflation eventually eliminates:
A. exogenous spending. B. recessionary gaps. C. expansionary gaps. D. unemployment.
The opportunity set contains:
a. a single combination of consumption that someone can afford given the prices of goods and the individual’s income. b. all possible combinations of consumption that someone can afford given the prices of goods regardless of the individual’s income. c. all possible combinations of consumption that someone can afford given the prices of goods and the individual’s income. d. a single combination of consumption that someone can afford given the prices of goods regardless of the individual’s income.
If unplanned business investment is $20 million and planned investment is $20 million, then actual investment is
A. -$20 million. B. $20 million. C. $40 million. D. $200 million.
The reason why a cure to a disease such as AIDS would have less elastic demand than a vaccine at every price is that
A. the vaccine would be more expensive. B. for a person with AIDS, the only alternative to the cure is death. C. for a person with AIDS, a vaccine would be more effective. D. the cure would be more expensive.