The IS curve depicts the relationship between
A) aggregate output and the real interest rate.
B) investment demand and the real interest rate.
C) investment demand and the level of current output.
D) national saving and the level of current output.
A
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If a perfectly competitive firm achieves productive efficiency then
A) it is producing at minimum efficient scale. B) it will raise its price in order to earn an economic profit. C) it is producing the good it sells at the lowest possible cost. D) the price of the good it sells is equal to the benefit consumers receive from consuming the last unit of the good sold.
Voters have an incentive to be rationally ignorant of most political issues because _____
a. all candidates target the median voter b. political information is costly c. they are likely to be canceled out by another uninformed voter d. their vote is highly unlikely to change the outcome
If Deluxe Fruits offers a $1.00 coupon for their fruit cups, this is an example of ________.
A) second-degree price discrimination B) first-degree price discrimination C) arbitrage D) market segmentation
Recall the Application about the decrease in the price of wool in the 1990s to answer the following question(s). In the 1990s, the world price of wool decreased by about 30 percent and prices have remained relatively low since then. In 2012, an organization in New Zealand proposed that sheep shearing be added to the Commonwealth Games and the Olympics as a spectator sport in an effort to increase the awareness and the demand for wool.Recall the Application. If the organization in New Zealand was successful in getting the Olympics to include sheep shearing as a spectator sport, and this helped to raise the world price of wool, the quantity of wool supplied would ________ because the market supply curve for wool is ________ sloped.
A. increase; positively B. increase; negatively C. decrease; positively D. decrease; negatively