What do businesses usually expect will increase when the economy experiences a continued rise in the level of inflation?
A. Consumer spending
B. Employment levels
C. Industry growth
D. Interest rates
D. Interest rates
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What is the difference between an "increase in demand" and an "increase in quantity demanded"?
A) An "increase in demand" is represented by a movement along a given demand curve, while an "increase in quantity demanded" is represented by a rightward shift of the demand curve. B) There is no difference between the two terms; they both refer to a movement downward along a given demand curve. C) An "increase in demand" is represented by a rightward shift of the demand curve while an "increase in quantity demanded" is represented by a movement along a given demand curve. D) There is no difference between the two terms; they both refer to a shift of the demand curve.
See Scenario 4.1. What quantity Qc will maximize Daniel's utility given the information above?
A) 0 B) 24 C) 40 D) 60 E) none of the above
Refer to the table below. If the six people listed in the table are the only consumers in the market and the equilibrium price is $11, how much consumer surplus will the market generate?
| person | max price to pay | actual price(equ. price |
| bob | $13 | $11 |
| barb | 12 | 11 |
| bill | 11 | 11 |
| bart | 10 | 11 |
| brent | 9 | 11 |
| betty | 8 | 11 |
When markets are contestable, a monopoly firm must behave as if it had competitors, even though the market structure is monopolistic.
Answer the following statement true (T) or false (F)