____ occurs when a consumer's quantity demanded for a good increases because a ____ number of consumers purchase the same good
a. A negative network externality; greater
b. A positive network externality; greater
c. Bandwagon effect; fewer
d. A positive network externality; fewer
b
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In the long run, an economy will produce its potential output if: a. workers mistakenly believe that nominal wages equal real wages
b. the expectations of workers and firms are the same in the long and short run. c. wages and prices are sufficiently flexible. d. the price level is high. e. the price level is low.
The coordinates of point A are 400 units of X and 40 units of Y. The coordinates of point B are 480 units of X and 60 units of Y. With X on the horizontal axis and Y on the vertical axis, the slope of the line between points A and B is
A) + 0.25 B) + 4.00 C) + 0.33 D) - 4.00 E) - 0.25
Refer to Table 5.2, which gives cost information for the production of widgets. Some values are missing, however. Which of the following is true?
A. A=45, E=40 B. A=75, E=40 C. A=45, E=10 D. A=75, E=10
Suppose the economy currently has an inflationary gap. The Fed engages in contractionary monetary policy. The impact of contractionary monetary policy will be to
A. decrease aggregate demand, decrease prices, and increase real GDP. B. decrease aggregate demand, decrease prices, and decrease real GDP. C. increase short-run aggregate supply, decrease in prices and decrease in real GDP. D. increase short-run aggregate supply, decrease prices and increase real GDP.