For a given price level, a downward shift of the expenditures schedule corresponds to an
A. inward shift of the aggregate demand curve.
B. outward shift of the aggregate demand curve.
C. outward shift of the aggregate supply curve.
D. inward shift of the aggregate supply curve.
Answer: A
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Which of the following economic systems requires some form of competition to better coordinate the plans and projects of households and enterprises?
A) capitalism. B) socialism. C) fascism. D) totalitarianism E) all of the above.
The law of demand assumes that as the price of a good increases,
a. people recognize that its price may be even higher in the future, so they buy now rather than later b. consumers tend to shift their purchases to relatively cheaper substitutes c. people will buy less of it in the hope that the good will be cheaper in the future d. the consumer's money income increases, and he or she is less able to buy all goods, including the good whose price has increased e. the consumer's money income decreases, and if the product is a normal good, more will be purchased
Trade
a. allows specialization, which increases costs. b. allows specialization, which reduces costs. c. reduces specialization, which increases costs. d. reduces specialization, which reduces costs.
The reason that all-you-can-eat restaurants can make a profit is due to
A) the law of demand. B) the law of increasing relative costs. C) the law of diminishing marginal utility. D) the law of diminishing marginal returns.