If two goods are close substitutes:
a. Consumers will always buy the one that has the lower price
b. An increase in the price of one causes the demand for the other to decrease
c. A decrease in the price of one causes an increase in the demand for the other
d. A fall in the price of one will decrease the demand for the other
d. A fall in the price of one will decrease the demand for the other
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The supply curve for high-skilled labor lies to the
A) right of the supply curve for low-skilled labor because more people want a high-skilled job. B) left of the supply curve for low-skilled labor because more people want a high-skilled job. C) left of the supply curve for low-skilled labor because it is costly to acquire skills. D) right of the supply curve for low-skilled labor because fewer high-skilled people are willing to work for a low wage.
How did changes in world interest rates contribute to the explosion of debt in the 1970s? What happened in the early 1980s to reverse this?
What will be an ideal response?
If more firms chose to pay efficiency wages, which of the following would shift to the right?
a. both the long-run Phillips curve and the long-run aggregate supply curve b. the long-run Phillips curve but not the long-run aggregate supply curve c. the long-run aggregate supply curve but not the long-run Phillips curve d. neither the long-run Phillips curve nor the long-run aggregate supply curve
Which of the following could be a direct cause of investment spending increasing?
A. Expected future income decreases. B. Interest rates increase. C. A firms costs unexpectedly drop making their profit margin higher. D. The wealth of consumers increasing causing them to radically increase their purchases.