If price is on the vertical axis and quantity demanded is on the horizontal axis, why is a demand curve downward sloping (left to right)?
A) Because a demand curve is the graphical representation of the law of demand, which specifies an inverse relationship between price and supply, ceteris paribus.
B) Because a demand curve is the graphical representation of the law of demand, which specifies a direct relationship between price and quantity supplied, ceteris paribus.
C) Because a demand curve is the graphical representation of the law of demand, which specifies an inverse relationship between price and demand, ceteris paribus.
D) Because a demand curve is the graphical representation of the law of demand, which specifies a direct relationship between price and demand, ceteris paribus.
E) Because a demand curve is the graphical representation of the law of demand, which specifies an inverse relationship between price and quantity demanded, ceteris paribus.
E
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Historically, the U.S. government seems to have ________
A) run budget surpluses as often as budget deficits B) generally spent less than what it collected in taxes each year C) had difficulty running budget surpluses D) not needed to borrow to finance wars E) none of the above
Other things equal, an adverse supply shock would
a. Lower the price level b. decrease real output c. Shift AD left d. Do a. and b. but not c.
Which of the following is true for a perfectly competitive market in long-run equilibrium?
A. There is no incentive for new firms to enter the market. B. Each firm in the market earns zero economic profit. C. There is no incentive for existing firms to leave the market. D. All of these are correct.
The ________ is(are) empowered to impose a number of ________ if it(they) find(s) that antitrust law has been violated.
A. courts; remedies B. Antitrust Division of the Justice Department; fines C. Interstate Commerce Commission; fines D. Federal Trade Commission; remedies