In this graph, point E2 is a(n) ______ equilibrium point because it ______.
a. sustainable; is on the LRAS curve
b. sustainable; is on the SRAS curve
c. unsustainable; increases output, but not prices from e1
d. unsustainable; increases prices, but not output from e1
a. sustainable; is on the LRAS curve
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Identify whether each of the following topics would be primarily a concern of microeconomics or macroeconomics:
a. The decision by a household to eat in rather than go out for dinner this evening. b. The unemployment rate increased from 4.5% to 4.8%. c. A decision by the Federal Reserve Bank to decrease the supply of money in the economy. d. The general level of prices increased by 5% last year. e. The price of bicycles increased by $30 last year. f. The family restaurant chain closed down after losing much of its customer base to fast-food competitors over the last few years.
A consumer has preferences over two goods, X and Y. Suppose we graph this consumer's preferences (which satisfy the usual properties of indifference curves) and budget constraint on a diagram with X on the horizontal axis and Y on the vertical axis. At the consumer's current consumption bundle, the consumer is spending all available income, and the marginal rate of substitution is less than the
slope of the budget constraint. We can conclude that the consumer a. is currently maximizing satisfaction subject to the budget constraint. b. could increase satisfaction by consuming more X and less Y. c. could increase satisfaction by consuming less X and more Y. d. could purchase more X and more Y and increase total satisfaction.
Acres of LandTanks of FertilizerTruckloads of Potatoes2002820170202105203135204152205141
Refer to Table 2.4. Increasing the tanks of fertilizer from 4 to 5 will:
A. increase truckloads of potatoes. B. decrease truckloads of potatoes. C. have no effect on truckloads of potatoes. D. require more acres of land.
Firms in a perfectly competitive market:
A. sell a differentiated product. B. sell homogeneous products. C. usually have large advertising budgets. D. try to attract customers away from their competitors.