An increase in quantity demanded is a movement along a fixed demand curve caused by a shift in the supply curve.
a. true
b. false
Answer: a. true
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A market with a large number of sellers
A) can only be a perfectly competitive market. B) might be an oligopoly or a perfectly competitive market. C) might be a monopolistically competitive or a perfectly competitive market. D) might be a perfectly competitive, monopolistically competitive, oligopoly, or monopoly market. E) can only be a monopolistically competitive market.
Suppose an individual has a fixed amount of wealth to allocate between consumption in two periods (c1 and c2). Any funds not spent in period 1 will earn interest (at the rate r) which will increase purchasing power in period 2 . Consider four possible reactions to an increase in r: I. c1 increases. II. c1 decreases. III. c2 increases. IV. c2 decreases. Which of these is consistent with the
hypothesis that both c1 and c2 are normal goods? a. I, II, III, and IV b. I, II, and IV, but not III c. I, III, and IV, but not II d. I, II and III, but not IV
The U.S. dollar is the most important reserve currency in the world
a. True b. False Indicate whether the statement is true or false
If the nominal wage rises by 4 percent, and the price level rises by 7 percent, the real wage will:
A. be unaffected. B. rise by 3 percent. C. fall by 3 percent. D. rise by 11 percent.