Suppose you buy eight pairs of shoes every spring. This year, your shoe store has a huge sale and you end up buying 12 pairs. How does your consumer surplus now compare to how much it would have been had there been no sale?
A. It is higher.
B. It remains the same.
C. It is lower.
A. It is higher.
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When a 2 percent increase in price generates a greater than 2 percent decrease in quantity demanded, then:
a. demand is price inelastic. b. total revenue increases. c. demand is positively sloped. d. demand is unit elastic. e. total revenue decreases.
Which of these changes was observed in the U.S. between 1929 and 1933?
a. The aggregate supply curve shifted inward with no change in the aggregate demand curve. b. The aggregate demand curve shifted inward with no change in the aggregate supply curve. c. The aggregate demand curve shifted outward with no change in the aggregate supply curve. d. The aggregate supply curve shifted outward with no change in the aggregate demand curve. e. The aggregate supply and demand curves both shifted outward.
The Fisher effect is crucial for understanding changes over time in
a. the nominal interest rate. b. the real interest rate. c. the inflation rate. d. the unemployment rate.
Since the minimum wage rate began it has typically stayed at about what percentage of the average manufacturing wage?
A) 10-20% B) 20-30% C) 40-50% D) 75-80%