Which of the following is true in the short run?
What will be an ideal response?
Per-unit costs do not increase as much as output prices when the price level rises. "A price level that is higher than expected results in a higher profit per unit, so firms have a profit incentive in the short run to increase production beyond the economy's potential level."
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Specialization and division of labor are made easier by the existence of money.
Answer the following statement true (T) or false (F)
What best describes the role of the United States in World War I?
a. The U.S. entered World War I as soon as it started. b. The U.S. was a neutral moderator throughout the war. c. The U.S. entered the war on the side of Russia and opposed Austria Hungary. d. U.S. business suffered severe financial losses during the war.
Which of the following will cause an inward shift in the demand for steaks at a restaurant?
a. A report by the American Medical Association states that the consumption of steak reduces the risk of cardiovascular disease b. A 50 percent reduction in the price of steaks c. A double-digit increase in the price of chicken d. A recession leading to a significant fall in the income levels of consumers e. The expectation that the price of steaks will double within two months
Which of the following is an example of the law of demand?
A. An increase in the price of tablets is followed by an increase in the sale of tablets. B. A decrease in the price of milk has no effect on the amount of milk consumed. C. The amount of smartphones sold increases while the price of smartphones is constant. D. An increase in the price of magnetic optical disks is followed by a reduction in the amount of magnetic optical disks purchased.