A demand curve
A) slopes down because of the inverse relationship between price and quantity demanded.
B) slopes up because of the direct relationship between price and quantity demanded.
C) can slope up or down depending on the tastes of the consumer.
D) is vertical for necessities, upward sloping for luxury goods, and downward sloping for all other goods.
Answer: A
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Systematic efforts to extend vaccination throughout the world have produced a situation today in which the smallpox virus is
A) in short supply (a shortage exists). B) rare. C) scarce. D) all of the above.
Suppose firms in a perfectly competitive market are incurring an economic loss. Over time
A) other firms enter the market, so the price rises and the economic loss decreases. B) some firms leave the market, so the price rises and the economic loss decreases. C) other firms enter the market, so the price falls and the economic loss decreases. D) some firms leave the market, so the price falls and the economic loss decreases.
A simple macroeconomic model might explain how an increase in the demand for new housing would lead to a decrease in the rate of unemployment. In such a model, which of these variables is likely to be exogenous?
A) the quantity sold of home furnishings B) the degree of unionization of the construction industry C) the wage rate for unskilled workers D) the level of tax revenues E) the demand for concrete
Refer to Figure 12.4. As a result of the monetary policy taking effect after the housing bubble had already burst, real GDP will be ________ potential GDP and the rate of inflation will be ________ the rate of inflation when the economy was initially
in equilibrium. A) greater than; greater than B) greater than; less than C) less than; less than D) less than; equal to