Why does consumer surplus decrease when price increases?
A. Consumers buy less of the good at a higher price.
B. Producers cannot sell as much to the consumer.
C. Consumers buy less of the good at a lower price.
D. Consumers buy more of the good at a higher price.
Answer: A
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The cost of internal equity (retained earnings) is ____ the cost of external equity (new common stock)
a. greater than b. equal to c. less than
_________ tend to be more intervention minded and hence more favorable disposed toward activist stabilization policies.
A. Liberals B. Conservatives C. Politicians D. None of the above is correct.
If the aggregate demand curve shifts to the left and the aggregate supply curve shifts to the right, the result will be a
a. decrease in the level of output. b. decrease in the price level. c. higher price level. d. higher unemployment rate.
If the prices of cars doubled, the MRP schedule for autoworkers would
A. rise. B. fall. C. stay about the same.