Other things being equal, an increase in the price of a good leads to a decrease in the amount people purchase. This is known as
A) the law of demand.
B) the law of supply.
C) ceteris paribus.
D) equilibrium.
A
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In the short-run, a tax increase
A) shifts the DD curve to the right, increases output and appreciates the currency. B) shifts the AA curve to the left, increases output and depreciates the currency. C) shifts the AA curve to the left, decreases output and depreciates the currency. D) shifts the AA curve to the left, increases output and appreciates the currency. E) shifts the DD curve to the left, decreases output and depreciates the currency.
The theory of land rent holds that
A. all plots of land are identical. B. all land yields a positive rent return. C. rent on any piece of land will equal the difference between the cost of producing the output on that land and the cost of producing it on marginal land. D. competition for superior plots of land will force the rent on those lands to a marginal return of zero.
Economic stagnation coupled with high inflation is commonly called:
A. stagflation. B. inflationary stagnation. C. stagnatory growth. D. inflagnation.
Game theory:
A. is the analysis of how people (or firms) behave in strategic situations. B. is best suited for analyzing purely competitive markets. C. reveals that mergers between rival firms are self-defeating. D. reveals that price-fixing among firms reduces profits.