Refer to the accompanying figure. Moving from demand curve D2 to demand curve D1 could be caused by a(n):
A. increase in the price of a substitute.
B. increase in the product's expected future price.
C. increase in the price of a complement.
D. increase in quantity supplied.
Answer: C
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Refer to Figure 24-1. Ceteris paribus, an increase in government spending would be represented by a movement from
A) AD1 to AD2. B) AD2 to AD1. C) point A to point B. D) point B to point A.
How mobile is Europe's labor force?
What will be an ideal response?
Output per worker must be ________ output per person.
A. less than or equal to B. equal to C. no more than half the size of D. greater than or equal to
As inflation drives up prices, people attempt to find substitutes and adjust what they buy. The resulting substitution bias problem causes the CPI to:
A. overstate the impact of higher prices on consumers. B. consistently underestimate the true inflation rate. C. omit the benefits of product quality improvements. D. have larger fluctuations than other price indexes.