The Latin phrase ceteris paribus means
A. The production possibilities curve never shifts.
B. Other things remain equal.
C. The invisible hand.
D. Laissez faire.
Answer: B
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In which of the following market types do all firms sell products so identical that buyers do not care from which firm they buy?
A) perfect competition B) monopolistic competition C) oligopoly D) monopoly E) perfect competition and monopolistic competition
Suppose in a democratic society, all voters prefer choice G over choice B; however, when the two choices are presented along with a third choice, R, B wins the election. This violates the assumption of
A) transitivity. B) non-dictatorship. C) independence of irrelevant alternatives. D) completeness.
Private property rights involve
a. the right to exclusive use of the property. b. legal protection against those who would seek to use or abuse the property without the owner's permission. c. the right to transfer, sell, exchange, or mortgage the property. d. all of the above.
Starting from short-run equilibrium, the following occurs: individuals expect higher (future) incomes and wage rates rise. What is the effect on the price level and Real GDP in the short run?
A) The price level rises and Real GDP rises. B) The price level falls and Real GDP falls. C) The price level rises, but the effect on Real GDP cannot be determined. D) Real GDP rises, but the effect on the price level cannot be determined. E) Real GDP falls, but the effect on the price level cannot be determined.