Suppose that over the next few years, the demand for dancing to country and western music decreases. Hence, at country and western dance clubs, the equilibrium price of admission ________, and the equilibrium quantity of dancing ________
A) rises; increases
B) falls; increases
C) rises; decreases
D) falls; decreases
E) does not change; decreases
D
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An expansion is:
A. the high point of economic activity prior to a downturn. B. the low point of economic activity prior to a recovery. C. a period in which the economy is growing at a rate significantly below normal. D. a period in which the economy is growing at a rate significantly above normal.
If the nominal interest rate in an economy is 6% and the inflation rate in the economy is 10%, then the real interest rate is:
A) -6%. B) 10%. C) 6%. D) -4%.
Capital is a factor of production. Which of the following is an example of capital?
i. $1,000 in money ii. 100 shares of Microsoft stock iii. $10,000 in bonds issued by General Motors iv. a drill press in your local machine shop A) i and ii B) ii only C) iii only D) iv only E) ii and iii
An increase in the capital stock would shift the production function _______ and the long-run aggregate supply curve to the _______.
A. upward; right B. upward; left C. downward; left D. to the right; right