In the basic 45-degree line model, what is the effect of an increase in the price level?
a. There will be movement to the left on the expenditure line.
b. There will be movement to the right on the expenditure line.
c. The expenditure line will shift downward.
d. The expenditure line will shift upward.
c
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An economy that does NOT trade with the rest of the world is a(n)
A. open economy B. trade economy C. closed economy D. command economy
An increase in the price of off-road vehicles will result in
A) a decrease in the supply of off-road vehicles. B) a larger quantity of off-road vehicles supplied. C) an increase in the demand for off-road vehicles. D) a smaller quantity of off-road vehicles supplied.
The vertical distance between a firm's average total cost curve and its average variable cost curve is its
a. marginal cost b. sunk cost c. total variable cost d. total fixed cost e. average fixed cost
Which of the following will not cause the aggregate supply curve to shift?
a. an increase in capital stock b. a decrease in the number of workers c. a decrease in the amount of natural resource base d. a change in the price level e. an increase in the number of entrepreneurs