Which of the following will cause a decrease in consumer surplus?
a. an increase in the number of sellers of the good
b. a decrease in the production cost of the good
c. sellers expect the price of the good to be lower next month
d. the imposition of a binding price floor in the market
d
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If there is a decrease in foreign demand for U.S. goods due to a recession in Europe
A) the U.S. aggregate demand will shift right. B) the U.S. aggregate demand will shift left. C) the U.S. aggregate demand will not be affected. D) the U.S. aggregate demand will become steeper.
What are the primary reasons for and against a policy of "too big to fail."
What will be an ideal response?
A decrease in the money supply:
a. lowers the interest rate, causing a decrease in investment and a decrease in GDP. b. lowers the interest rate, causing a decrease in investment and an increase in GDP. c. raises the interest rate, causing an increase in investment and a decrease in GDP. d. raises the interest rate, causing an increase in investment and an increase in GDP. e. raises the interest rate, causing a decrease in investment and a decrease in GDP.
Which of the following is an example of countervailing power at work?
a. The government monopolizes the United States Postal Service. b. Ford and General Motors join forces to raise prices. c. Compaq and IBM merge. d. Microsoft lowers price below cost to drive rivals out of business. e. Big business is met across the bargaining table by big labor.