What type of relationship does the law of demand demonstrate?
A. inverse
B. direct
C. dynamic
D. equilibrium
Answer: A
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Why does depreciation decrease the stock of capital?
What will be an ideal response?
Suppose that the price of a pound of potatoes increases from $0.75 to $0.90 . Use the midpoint formula to calculate the percentage change in price
What will be an ideal response?
Which of the following statements is NOT true about inflation?
A) Inflation is a sustained increase in the average prices of goods in the economy. B) During an inflationary period, the prices of some goods will increase while the price of some goods will decrease. C) When there is inflation, the purchasing power of a dollar decreases. D) During an inflationary period, the prices of all goods will increase.
Refer to the diagram. A decrease in supply is depicted by a:
A. move from point x to point y.
B. shift from S 1 to S 2 .
C. shift from S 2 to S 1 .
D. move from point y to point x.