The above figure shows a graph of the market for pizzas in a large town. Suppose that concern over dietary habits has led the government to impose a restriction that limits suppliers to produce only 40 pizzas
As a result, for prices greater than $7, the A) supply curve is unchanged.
B) supply curve is vertical.
C) demand curve becomes vertical.
D) demand curve becomes horizontal.
B
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Which of the following correctly describes the automatic mechanism through which the economy adjusts to long-run equilibrium?
A) the rightward shift of the aggregate demand curve that occurs during a recession B) the leftward shift of the short-run aggregate supply curve that occurs after a recession C) the rightward shift of the short-run aggregate supply curve that occurs after a recession D) the leftward shift of the aggregate demand curve that occurs after a recession
Which of the following activities would fall under the leisure category in labor-leisure indifference curve analysis
a. cutting your own lawn. b. cleaning your own garage. c. neither a or b. d. both a and b.
More economic growth is not necessarily better unless the benefits of growth:
A. exceed the costs of growth. B. increase real GDP per capita. C. increase human capital. D. increase average labor productivity.
If the trade surplus has fallen, which of the following is a possible explanation?
a. The real exchange rate rose. b. Foreign income fell. c. Domestic income fell. d. The foreign price level rose.