If the price level in the U.S. decreases, aggregate output demanded:
a. decreases because U.S. products become cheaper relative to foreign products
b. decreases because U.S. products become more expensive relative to foreign products.
c. increases because U.S. products become cheaper relative to foreign products.
d. increases because U.S. products become more expensive relative to foreign products.
e. decreases because household wealth and spending in the U.S. decrease.
c
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Empirical evidence suggests that the federal budget has remained more or less in surplus between 1990 and 2002
a. True b. False Indicate whether the statement is true or false
According to the efficient markets theory of stock prices, who are the primary beneficiaries of a sudden rise in demand for a firm's stock?
a. the consumers of the firm's products b. the current shareholders at the time of the rise in demand c. the investors who buy the firm's stock shortly after the rise in demand d. the investors who sell their shares just before the rise in demand e. the investors who have been carefully watching stock price patterns
Which of the following would cause a shift in the demand curve from point A to point B?
A. a decrease in income (inferior good) B. an increase in the price of a substitute good C. an increase in income (normal good) D. all of the above
Cartels are difficult to operate for which of the following reasons?
a) The work only if members keep to their agreed output b) they are illegal worldwide c) Firms in a cartel are likely to lose money d) The products are perfectly competitive