Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD3 the result in the long run would be:
A. P2 and Y2.
B. P1 and Y2.
C. P4 and Y2.
D. P1 and Y1.
Answer: B
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Why are there two different views on the effect of taxation on labor supply in the United States?
What will be an ideal response?
Arnold Marion, a first-year economics student at Fazer College, was given an assignment to find an example of price discrimination and present it to his class
When asked for his example Arnold said "I went to a Milwaukee Brewers baseball game with my cousin last week. We paid $25 each for our seats in left field. My aunt and uncle paid $50 each for their tickets; they sat five rows behind the first base dugout. This is an example of price discrimination since we paid different prices for the same product, and the differences were not due to differences in costs." How would Arnold's economics instructor assess Arnold's example? A) He would agree with Arnold that he had found an example of price discrimination, but would add that arbitrage would occur if ticket scalpers sold Brewers tickets for more than the prices Arnold and his uncle paid. B) He would agree with Arnold that he had found an example of price discrimination and would explain that the elasticity of demand for Brewers tickets is different for Arnold and his uncle. C) He would disagree with Arnold's example because there were differences in transactions costs for the $50 tickets and the $25 tickets. D) He would disagree with Arnold's example because the $25 seats and the $50 seats were not the same products.
If households pay a fixed annual fee for trash disposal,
A) households will all tend to produce the same amount of garbage. B) households have no incentive to cut back on the amount of garbage they generate. C) that fee will provide households with an incentive to cut back on the amount of garbage they generate. D) that fee will discourage households from throwing out reusable materials. E) that fee will discourage households from throwing out toxic or otherwise harmful materials.
Refer to the information provided in Figure 32.2 below to answer the question(s) that follow.
Figure 32.2Refer to Figure 32.2. According to ________ economists, under rational expectations an expected increase in government spending would not change AD or AS.
A. Keynesian B. the new classical C. monetarist D. none of the above