A contraction of the money supply:
A. increases the interest rate and decreases aggregate demand.
B. increases both the interest rate and aggregate demand.
C. lowers the interest rate and increases aggregate demand.
D. lowers both the interest rate and aggregate demand.
A. increases the interest rate and decreases aggregate demand.
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The region with the highest percentage of people who live on less than $1.90 a day is:
A. China. B. sub-Saharan Africa. C. South Asia. D. None of these is true.
If the actual market price were fixed at $15 per unit in Figure 3.2,
Figure 3.2 Supply and DemandÂ
A. There would be a shortage of 40 units. B. There would be a shortage of 20 units. C. There would be a surplus of 20 units. D. There would be a surplus of 40 units.
A risk-neutral monopoly must set output before it knows the market price. There is a 50 percent chance the firm's demand curve will be P = 20 ? Q and a 50 percent chance it will be P = 40 ? Q. The marginal cost of the firm is MC = Q. The expected profit-maximizing price is:
A. $20. B. $10. C. $15. D. $5.
An agency that regulates labor markets is the
A. Better Business Bureau. B. Federal Trade Commission. C. Consumer Product Safety Commission. D. Equal Employment Opportunity Commission.