The data in the above table indicate that when the price level is 120
A) firms have unexpectedly low inventories, so prices will rise.
B) inventories are at levels planned by firms.
C) firms will plan to increase the level of output.
D) firms have unexpectedly high inventories, so prices fall.
D
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Assume that as the firms in a perfectly competitive industry expand output, the prices of productive inputs increase
All else constant, this would cause the individual firms' marginal cost curves to ________ and the market supply curve to become ________. A) shift down; flatter B) shift down; steeper C) shift up; flatter D) shift up; steeper
If government tax revenues change automatically and in a countercyclical direction over the course of the business cycle, this would be called a(n):
A. expansionary fiscal policy. B. nondiscretionary fiscal policy. C. discretionary fiscal policy. D. political business cycle.
A positive cross-elasticity of demand between two goods indicates that the two goods are both normal goods.
a. true b. false
People who consent to bear costs for the benefit of others whom they do not know personally usually do so
A) because they are concerned about the welfare of society. B) because they have been offered some benefit as an inducement. C) only when they are compelled by force. D) without calculating the costs to themselves.