Refer to Figure 3-3. The figure above shows the supply and demand curves for two markets: the market for an original Picasso painting and the market for designer jeans. Which graph most likely represents which market?
A) Graph B represents the market for an original Picasso painting and Graph A represents the market for designer jeans.
B) Graph A represents both the market for an original Picasso painting and designer jeans.
C) Graph A represents the market for an original Picasso painting and Graph B represents the market for designer jeans.
D) Graph B represents both the market for an original Picasso painting and designer jeans.
A
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Gasoline prices increase by 50 percent and other things remain the same. As a result, there is
A) an increase in the demand for gasoline. B) a decrease in the demand for gasoline. C) no change in the quantity of gasoline demanded. D) a decrease in the quantity of gasoline demanded. E) More information is needed to determine if the demand for gasoline increases or decreases.
When people trade goods for money, money is being used as a medium of exchange
a. True b. False Indicate whether the statement is true or false
Which of the following best describes the notion of full employment?
(a) Less than 5% of the labour force is unemployed; (b) The current level of employment that is sustainable; (c) Employment and unemployment are at their "natural" rates; (d) All of the above could describe it.
When most consumers and firms reduce spending only because they expect other consumers and firms to reduce spending, and a recession results:
A. a self-correction has occurred. B. an adverse aggregate supply shock has occurred. C. a coordination failure has occurred. D. a real-business downturn has occurred.