An increase in demand occurs when
A. we move up the demand curve.
B. the demand curve shifts to the left.
C. we measure price in money price rather than real price.
D. the demand curve shifts to the right.
Answer: D
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Between 1980 and 2008 recycling in the United States has
a. decreased by less than 2%. b. increased by less than 2%. c. doubled. d. tripled.
When the wage rate paid to labor is above equilibrium, the:
A. supply of labor increases. B. number of jobs available exceeds the number of workers seeking jobs. C. demand for labor decreases. D. number of workers seeking jobs exceeds the number of jobs available.
Recall the Application about how a simultaneous increase in the gasoline tax and decrease in the income tax affect gasoline consumption to answer the following question(s).Recall the Application. Suppose a tax on carbon that increases the price of gasoline is combined with a cut in income taxes to ensure that total tax revenue collected by the government does not change. This tax policy has no ________ but has ________.
A. income effect; a substitution effect. B. income effect; a positive real effect. C. no real effect on consumption; an income effect. D. substitution effect; an income effect.
In the short run, the monopolistic competitor is just like the perfect competitor in that
A. each equates marginal revenue and marginal cost in order to maximize profits, with the result that price exceeds marginal revenue. B. either type of firm can earn economic profits, experience economic losses, or break even in the short run. C. new firms enter in the short run when firms are making profits. D. equilibrium is determined by setting price equal to marginal cost.