The market demand curve is derived by:
a. studying an individual's demand for a product over a year.
b. comparing the monthly consumption of a group of people.
c. surveying a set of consumers and ascertaining their preferences.
d. adding up the quantities that consumers in a market are willing and able to purchase at each price.
e. calculating the average price a random sample of consumers are willing to pay for a product.
d
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Refer to Figure 27-5. In the dynamic model of AD-AS in the figure above, if the economy is at point A in year 1 and is expected to go to point B in year 2, and no fiscal or monetary policy is pursued, then at point B
A) the economy is above full employment. B) firms are operating below capacity. C) there is pressure on wages and prices to rise. D) income and profits are rising. E) the unemployment rate is very low.
For a large firm that produces and sells automobiles, which of the following costs would be a variable cost?
a. the unemployment insurance premium that the firm pays to the state of Missouri that is calculated based on the number of worker-hours that the firm uses b. the cost of the steel that is used in producing automobiles c. the cost of the electricity of running the machines on the factory floor d. All of the above are correct.
Given that frozen yogurt and ice cream are substitutes, a shift in preferences in favor of yogurt would be predicted to do all of the following EXCEPT
A) raise the equilibrium price of frozen yogurt. B) increase the quantity supplied of frozen yogurt. C) increase the supply of ice cream. D) increase the demand for frozen yogurt.
The imposition of an import quota shifts
a. the supply of currency right, so the exchange rate falls. b. the supply of currency left, so the exchange rate rises. c. the demand for currency right, so the exchange rate rises. d. the demand for currency left, so the exchange rate falls.