In the macroeconomy, demand-side shifts change:
A. aggregate demand only, which is why the price level remains unaffected in the long run.
B. only the output level in the long run, while prices eventually return to their long-run potential levels.
C. only the price level in the long run, while output eventually returns to its long-run potential level.
D. aggregate demand only, which eventually shifts back in the long run.
Answer: C
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The following table shows John's total utility derived from billiards and bowling games. Assume John has $30 to spend on a game of billiards and/or a game of bowling. A game of billiards costs him $4, and a game of bowling costs him $2. Which of the following is John's utility-maximizing combination of the games of billiards and the games of bowling? Quantity Total Utility Games of billiards Games of bowling 0 0 0 1 100 70 2 180 130 3 240 180 4 272 210 5 288. 218 6 292. 222
a. ?Twelve games of bowling b. ?Five games of billiards and two games of bowling c. ?Four games of billiards and four games of bowling d. ?Five games of billiards and five games of bowling e. ?Three games of billiards and eight games of bowling
Refer to the given data. Zabella has a balance of trade (goods):
A. deficit of $10 billion.
B. surplus of $5 billion.
C. surplus of $10 billion.
D. deficit of $5 billion.
A monopolistically competitive firm makes positive economic profits if ________
A) price is less than average total cost B) price is higher than average total cost C) price equals marginal cost D) price equals average fixed cost
Which of the following is NOT an example of a financial derivative?
A) forwards B) bonds C) swaps D) futures E) options