a price index is designed to measure
What will be an ideal response?
the cost of buying a market basket of goods at a point in time relative to the cost of buying the same market basket during an earlier time period
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Demand curves slope ________ because as the price increases and other things remain the same, the quantity demanded ________
A) downward; decreases B) downward; increases C) upward; decreases D) upward; increases E) downward; does not change
In the short run, ________ increases the quantity of labor demanded by the firm
A) a decrease in the price of the firm's output B) an increase in the prices of other factors of production used by the firm C) a technological advance that decreases the marginal product of labor D) a decrease in the wage rate
A temporary decrease in taxes leads to
A) a small increase in current consumption. B) a large increase in current consumption. C) a small decrease in future consumption. D) a large decrease in future consumption.
If a seller lowers the price of a product when demand is price inelastic, the seller can expect revenues to
A) rise. B) fall. C) stay the same. D) either rise or fall, but it is impossible to determine which.