Suppose that for a given good, demand decreases and supply decreases at the same time. If demand decreases by a greater amount than supply decreases, then equilibrium price __________ and equilibrium quantity __________ for that good
A) rises; rises
B) rises; falls
C) falls; rises
D) falls; falls
D
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A game show host who gave up his job as a teacher brags about his salary, saying "the rest is pure gravy." Here, "the rest" refers to
a. opportunity cost b. implicit cost c. explicit cost d. the height of his labor supply curve e. economic rent
One of the underlying assumptions made when drawing the short-run aggregate supply curve is that: a. average wages and resource costs tend to be sticky in the short run
b. there are many buyers and sellers who are price takers. c. sellers offer differentiated products in the short run. d. capital is perfectly mobile between different industrial sectors in the short run.
The two most important factors contributing to increased productivity in industrialized countries in the twentieth century were:
A. technological progress and increases in the capital stock. B. higher relative prices and technological progress. C. higher relative prices and a larger labor supply. D. technological progress and increases in the labor supply.
Which of the following is the reason why every society needs to develop an economic system?