Which of the following changes does NOT shift the long-run aggregate supply curve?
A) a decrease in the labor force
B) a fall in the price level
C) a rise in number of college graduates in the labor force
D) a tax hike that reduces the capital stock
B
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Historically, one of the most common reasons for countries to impose tariffs was
A) to protect their national security. B) to raise revenue for the government. C) to eliminate unemployment. D) to counter inflation. E) None of the above.
The price elasticity of demand for eggs is 0.27. Thus, 0.27 is the:
A. percentage change in the quantity demanded of eggs when the price of eggs increases by one percent. B. size of the shift in the demand for eggs when the price of eggs changes by one percent. C. size of the percentage change in the quantity supplied of eggs when the demand for eggs changes due to a price change. D. percentage change in the price of eggs when the quantity demanded of eggs increases by one percent.
A shoe manufacturer wants to maximize its total revenue. When the manufacturer charges $25 per shoe, consumers demand 50 shoes per day. The manufacturer knows that the demand for shoes is highly elastic. In the given scenario, which of the following statements is true?
a. To maximize total revenue, the manufacturer should decrease the price of its shoes, because the percentage increase in quantity demanded will more than offset the decrease in price. b. To maximize total revenue, the manufacturer should decrease the price of its shoes, because the percentage increase in quantity demanded will not offset the decrease in price. c. To maximize total revenue, the manufacturer should increase the price of its shoes, because the increase in price will more than offset the decrease in quantity demanded. d. To maximize total revenue, the manufacturer should increase the price of its shoes, because the increase in price will not offset the decrease in quantity demanded.
The "loanable funds market" is a term used by economists to describe the
a. demand for goods and services by households. b. market that includes resources such as labor and capital. c. supply of goods and services by firms. d. market that coordinates the borrowing and lending of individuals and firms.