Refer to the information provided in Figure 26.4 below to answer the question(s) that follow.
Figure 26.4Refer to Figure 26.4. Suppose the economy is at Point A, a decrease in aggregate demand moves the economy to Point
A. E.
B. B.
C. C.
D. D.
Answer: C
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Most businesses probably claim they use cost-plus-markup pricing because
A) they are price takers. B) they are maximizing net revenue. C) they have no better way to explain their price-setting behavior. D) they are responsible for long-run inflation.
Consumer surplus can be measured as the area between the demand curve and the equilibrium price
a. True b. False Indicate whether the statement is true or false
If minimum wage is set above equilibrium wage rate, powerful effects.
What will be an ideal response?
Insurance companies require male drivers under age 25 to pay higher insurance rates than female drivers under age 25. Craig Raymond, however, is a safer driver than the average female driver under age 25. Craig's higher insurance rate reflects:
A. monopoly power. B. statistical discrimination. C. the insurance firm's taste for discrimination. D. human-capital discrimination.