Refer to Figure 3-2. A decrease in the price of the product would be represented by a movement from
A) A to B. B) B to A. C) S1 to S2. D) S2 to S1.
B
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Which of the following statements is correct?
A. An increase in exports and an increase in imports will both tend to decrease the equilibrium real GDP. B. An increase in exports and an increase in imports will both tend to increase the equilibrium real GDP. C. An increase in exports will tend to decrease, and an increase in imports will tend to increase, the equilibrium real GDP. D. An increase in exports will tend to increase, and an increase in imports will tend to decrease, the equilibrium real GDP.
Refer to the above figure. The above figure shows the cost structure of a firm producing an information product. Which curve represents average fixed cost?
A) Curve 1 B) Curve 2 C) Curve 3 D) Any of the 3 could be AFC.
Reserves in the banking system will increase if the Fed:
A. sells euro-dominated bonds and keeps the euros from the sale. B. sells euro-dominated bonds and exchanges the euros for dollars. C. sells euros or buys dollars. D. buys euros or sells dollars.
Suppose consumer tastes and preferences shift from tacos to pizzas. In the short run, these changing tastes will result in pizza restaurants ________ pizza prices and taco restaurants ________ taco prices.
A. increasing; decreasing B. decreasing; increasing C. decreasing; decreasing D. increasing; increasing