If Martina's income increases and, as a result, she chooses to buy more lattés per month at each price, then her demand curve will
a. shift to the right.
b. shift to the left.
c. not shift; instead, Martina will move along her demand curve downward and to the right.
d. not shift; instead, Martina will move along her demand curve upward and to the left.
a
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Since the 1970s, the Phillips curve has:
a. remained stable. b. moved in a clockwise direction. c. been unstable. d. been used as a reliable model to guide public policy.
Consumption:
A. is a major component of aggregate demand. B. is negatively related to the national price level. C. measures people's expenditures on real goods and services. D. All of these are true.
Figure 6.9 depicts a hypothetical fish market with a horizontal supply curve. Suppose the government imposes a tax of $2 per pound of fish, and the tax is paid in legal terms by producers. Which of the following shows the loss of consumer surplus on the fish that are not consumed because of the tax?
A. Triangle C B. Rectangle B + Triangle C C. Triangle C + Rectangle E D. Rectangle B + Rectangle D
A fall in the price of the final product produced by a firm will cause
A) a decline in the price of an input used to produce the good. B) a movement down the demand curve for an input used to produce the final product. C) a reduction in demand for an input used to produce the final product. D) a reduction in the supply of an input used to produce the final product.