If households expect prices of consumer goods to decline, this will:
A. increase the quantity of real domestic output demanded.
B. decrease aggregate demand.
C. decrease the quantity of real domestic output demanded.
D. increase aggregate demand.
Answer: B
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The figure above illustrates a linear demand curve. If the price falls from $6 to $4
A) total revenue increases. B) total revenue decreases. C) total revenue remains unchanged. D) quantity demanded increases by more than 100 percent.
All else constant, if butter and margarine are substitute goods, then as the price of butter rises,
a. the demand for margarine will fall b. the quantity of butter demanded will fall c. the demand for butter will fall d. the demand for butter will rise e. butter and margarine will become complementary goods, provided that butter is a normal good
Which of the following transactions adds to U.S. GDP for 2015?
a. In 2015, Ann sells a car that she bought in 2011 to Bill for $7,000. b. An American management consultant works in Canada during the summer of 2015 and earns the equivalent of $40,000 during that time. c. When Ken and Kim were both single, they lived in separate apartments and each paid $800 in rent. Ken and Kim got married in 2015 and they bought a previously unoccupied house that, according to reliable estimates, could be rented for $1,700 per month. d. None of the above transactions adds to U.S. GDP for 2015.
In comparison to a competitive industry how is a monopoly different?
A.) High prices and profits signal consumers' demand for more output. B.) Firms try to operate where marginal cost equals marginal revenue. C.) The product is standardized or unique. D.) During price adjustments price equals marginal cost throughout the process.