From 2006 to 2008 there was a dramatic fall in the price of houses. If this fall made people feel less wealthy, then it would have shifted
a. aggregate demand right.
b. aggregate demand left.
c. aggregate supply right.
d. aggregate supply left.
a
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Price controls date back to
A. World War II. B. the U.S. Revolutionary War. C. thousands of years, at least back to ancient Babylonia. D. the 1970s. E. the last 20 years.
List some factors that might make the threat of a strike more effective
Suppose a U.S. government program subsidizes the production of domestic sugar producers and places a tariff (tax) on the importation of sugar from other countries. This program
A) helps the producers of sugar, but increase the opportunity cost of obtaining it. B) will reduce the opportunity cost of obtaining sugar and therefore lead to lower sugar prices. C) creates wealth, because the government is providing the subsidies and imposing the tariffs. D) promotes the production of goods that consumers value highly relative to cost.
Why are quantity discounts an effective form of price discrimination?
a. Willingness to pay drops as more units are purchased. b. Willingness to pay increases as more units are purchased. c. Willingness to pay remain unchanged as more units are purchased. d. Willingness to pay is similar for all customer groups.