If a shift in aggregate demand only affects real Gross Domestic Product (GDP), then the short-run aggregate supply (SRAS) curve must be
A) upward sloping.
B) downward sloping.
C) horizontal.
D) vertical.
Ans: C) horizontal.
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Describe intellectual property rights. What agreements have been reached regarding their protection? What are the benefits and the costs of protecting intellectual property rights?
What will be an ideal response?
According to a recent study, "Stricter college alcohol policies, such as raising the price of alcohol, or banning alcohol on campus, decrease the number of students who use marijuana"
On the basis of this information, how would you describe alcohol and marijuana? A) The two goods are substitutes in consumption. B) The two goods are complements in consumption. C) They are both luxury goods. D) There is no relationship between the two goods.
Songwriters and composers press music companies to lower the price for music downloads because
a. demand for on-line music is inelastic b. profits are maximized where price elasticity of demand is -1.0 c. songwriter royalties are a percentage of sales revenue d. profits and total revenue are maximized at different quantities e. profits are maximized at the same prices as sales revenue
Which of the following differentiates firm behavior in oligopoly from firm behavior in other market structures?
a. They are price makers. b. They collude to lower prices together. c. They collude to raise prices together. d. They are price takers. e. They take into consideration how other firms might react to their actions.