American automobile manufacturers and dealers appear to adjust the price (sticker prices plus financing charges) by periodically changing interest rates and by using rebates and surcharges as opposed to directly changing sticker prices
Assuming that they maximize their profits, this pricing approach may reflect A) a relatively low cost to adjust sticker prices.
B) a relatively low cost to adjust advertising.
C) a relatively high cost to adjust sticker prices.
D) a relatively high cost of advertising.
C
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Refer to Figure 14.2. Other things equal, a movement from point C to point B would be caused by
A) an increase in the price level. B) a decrease in the price level. C) a positive supply shock. D) a negative supply shock.
Savings accounts are also known as
a. M3 money b. time deposits c. demand deposits d. money market deposit accounts e. noninterest bearing M1 money
Which of the following would be most likely to shift the long-run aggregate supply curve (LRAS) to the right?
a. favorable weather conditions that increased the size of this year's grain harvest b. an increase in resource prices relative to product prices c. an increase in labor productivity as the result of improved computer technology and expansion of the Internet d. an increase in the cost of security as the result of terrorist activities
The invisible hand of the marketplace acts to allocate resources efficiently, but it does not necessarily ensure that resources are allocated fairly
a. True b. False Indicate whether the statement is true or false