As income and production rise, the demand for real money balances will ________ and interest rates will ________
A) fall; fall
B) rise; rise
C) rise; fall
D) fall; rise
B
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How did Adam Smith explain the cause of the wealth of nations?
A) The growth of the middle class B) The growth in the average level of prices C) The growth of the division of labor D) People's unending urge to consume
An increase in supply will cause the supply line to
a. move to the left. b. move to the right. c. become more vertical. d. become more horizontal.
A kinked demand curve
a. results from the heavy advertising expense required. b. occurs because, when one seller lowers the price, no one else will do so. c. is a basic characteristic of monopolistic competition markets. d. tends to be inelastic for price decreases and elastic for price increases.
Other things equal, the supply of labor will be higher to a job that
a. requires a supervisor to closely monitor employee performance b. provides few opportunities for training c. has a starting time of midnight d. requires advanced skills or education e. has more amenities