Suppose demand for a good is QD = 100 - P and supply is QS = -20 + P. What is the amount consumers pay producers?
a. 60
b. 2400
c. 3600
d. 6400
b
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Refer to Scenario 15.6. What formula shows the dollar stream expected from this purchase?
A) -$4000 + $0 + $25,000 + $25,000 + $25,000 + $25,000 B) $0 + $25,000 + $25,000 + $25,000 + $25,000 C) $25,000 + $25,000 + $25,000 + $25,000 D) -$4000 + $0 + $2500 + $2500 + $2500 + $2500 E) $96,000
Business cycles can be described as
a. fluctuations around a long-term growth trend. b. changes in economic activity due to natural causes. c. increases in the level of business activity over an extended period of time. d. changes in business activity due to wars.
Refer to the figure and assume the economy initially is in equilibrium at point a. In the new classical theory, a fully anticipated decrease in aggregate demand from AD 2 to AD 3 would move the economy:
A. directly from a to h.
B. from a to g to h.
C. directly from a to d.
D. from a to c to h.
The optimal consumption bundle is the point representing a consumption-leisure pair that is on the
A) lowest possible indifference curve and is on or outside the consumer's budget constraint. B) lowest possible indifference curve and is on or inside the consumer's budget constraint. C) highest possible indifference curve and is on or outside the consumer's budget constraint. D) highest possible indifference curve and is on or inside the consumer's budget constraint.