Cable television companies must pay increased charges by the networks for the programs the cable companies carry. As a result, the price of cable television rises. Thus
A) the demand curve for cable television service shifts rightward.
B) the demand curve for cable television service shifts leftward.
C) there is a movement down the demand curve for cable television to a higher quantity demanded.
D) there is a movement up the demand curve for cable television to a smaller quantity demanded.
D
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Suppose the consumer's indifference curves are concave (i.e., bowed away from the origin) instead of convex. In this situation,
a. along an indifference curve, the marginal value of X is falling as more X and less Y is consumed. b. all baskets on the budget line give the consumer the same level of satisfaction. c. the marginal value of X must equal PX/PY at the consumer's optimum. d. the consumer's optimum is always a corner solution.
Suppose that there are only two goods in Japan, sushi and saki. The absolute price of a 100-gram plate of sushi is 200 yen, and the absolute price of a liter of saki is 100 yen. What is the relative price of saki in terms of sushi?
a. 100 grams per liter. b. 200 grams per liter. c. 50 grams per liter. d. 400 grams per liter.
Stagflation refers to a situation in which the economy is experiencing:
A. high economic growth and high inflation. B. low economic growth and high inflation. C. high economic growth and low inflation. D. low economic growth and low inflation.
We draw the long-run aggregate supply curve as a vertical line to reflect the fact that
A. the productive capacity of the economy never changes after full adjustment has occurred. B. an accurate depiction of the production possibilities curve is vertical after full adjustment has occurred. C. changes in the price level do not alter the level of long-run real GDP after full adjustment has occurred. D. technology and resource endowments do not affect long-run real GDP after full adjustment has occurred.