(Consider This) The idea that the price level readily moves upward but not downward is called the:
A. elevator effect.
B. escalator effect.
C. ratchet effect.
D. stair-step effect.
C. ratchet effect.
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The following are the equations for the supply and demand curves in the market for weezils: Demand: Qd= 20?2P Supply: Qs= 5 + 3P where Qdis the quantity demanded, Qsis the quantity supplied, and P is the price per weezil in dollars. Refer to Exhibit 4-1. According to the data given, when the market is in Equilibrium, how many weezils are sold?
A. 3 B. 5 C. 11 D. 14
The figure above shows Ilene's budget line. If her dog, Muffin, runs away and she adopts another cat, named Sphynx, the budget line shown in the figure will
A) become flatter. B) become steeper. C) shift outward (because cats eat less). D) not move.
Externalities get their name from the fact that they are:
a. b and d. b. unintended. c. short lived. d. outside of decisions. e. outside of marketplace.
New residential housing is counted in GDP as a(n)
a. durable consumption good b. household durable good c. investment good d. inventory expansion e. long-term durable good