Last year your job at the university cafeteria paid you $9 an hour and the price of a music download was $1.00 . This year your cafeteria job pays $9.90 per hour and download costs $1.10 . You are clearly
a. worse off because of inflation.
b. worse off because the download is now relatively more expensive.
c. better off because your wage rate went up.
d. better off because the download now costs less work.
d
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Over the last few years, demand for DVDs has increased, and yet their equilibrium price has fallen. Which of the following best explains this situation?
a. When the price falls, the quantity supplied increases. b. There has been a shortage of DVDs. c. The supply of DVDs must have decreased. d. The demand curve for DVDs slopes upward, so an increase in demand leads to a lower price. e. The supply of DVDs must have increased more than the demand for DVDs increased.
If producers who hire labor in a competitive labor market decide to purchase the new automated machine that completes the work of 30 employees, we would expect the labor-demand curve to shift to the:
A. left and wages would rise. B. right and wages would rise. C. left and wages would decrease. D. right and wages would decrease.
If a price ceiling is to be effective, it should be set
A. Below the equilibrium price, and it will create a market surplus. B. Above the equilibrium price, and it will create a market shortage. C. Above the equilibrium price, and it will create a market surplus. D. Below the equilibrium price, and it will create a market shortage.
If a fall in the price level made people feel richer and initially increased aggregate expenditures by 20, the AD curve would:
A. shift by less than 20. B. not shift at all. C. shift by exactly 20. D. shift by more than 20.