In the figure above, as the price level increases, the aggregate demand curve will
A) shift from AD1 to AD3 and then back to AD1.
B) shift from AD1 to AD3.
C) shift from AD1 to AD2.
D) not shift, but the aggregate demand curve will change so that it is positively sloped.
E) not shift.
E
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A pure monopolist is selling 7 units at a price of $12. If the marginal revenue of the 8th unit is $4, then the price of the 8th unit is
A) $10. B) $11. C) greater than $12. D) $4.
A renewable resource:
A. can be replenished naturally over time. B. is used to regenerate an old piece of capital. C. is used when adopting new technology, and replacing old capital. D. cannot be replenished naturally over time.
Which of the following is the best example of an investment in human capital?
a. the purchase of an industrial development bond b. a graduate student who completed 24 semester units in economics last year c. the purchase of a lawn mower by a homeowner d. an unemployed stockbroker who drives a cab in order to pay his bills
Creative destruction refers to the process where
a. new products and methods of production are continuously replacing old ones b. producing more of one good causes you to produce less of another c. everybody involved is made worse off d. new ways to destroy buildings are employed