Two donut chains in your town are battling for customers. The manager of the Real Yum Donut Shop lowered donut prices. As a result, customers:
a. increase the quantity demanded of Real Yum donuts
b. decrease the quantity demanded of Real Yum donuts.
c. buy the same quantity of Real Yum donuts as before the price change.
d. decrease their demand for Real Yum donuts.
a
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Suppose an American worker can make 50 pairs of gloves or grow 300 radishes per day. On the other hand, a Bangladeshi worker can produce 100 pairs of gloves or grow 200 radishes per day. Using the concept of absolute advantage, which of the following statements is true? The United States:
A. has the absolute advantage in the production of both gloves and radishes. B. does not have the absolute advantage in the production of either gloves or radishes. C. has the absolute advantage in the production of gloves, but not radishes. D. has the absolute advantage in the production of radishes, but not gloves.
Keynesians believe that an increase in the money supply will lead to:
a. both c and d. b. all of the following. c. an increase in the price level. d. a decrease in nominal GDP. e. an increase in real GDP.
Since 1960, real hourly compensation in the United States has approximately:
A. remained the same. B. risen by 40 percent. C. doubled. D. tripled.
Refer to the information provided in Figure 6.1 below to answer the question(s) that follow.
Figure 6.1Refer to Figure 6.1. Assume Tom is on budget constraint AC and the price of a hamburger is $8.00. Tom's monthly income is
A. $2.50. B. $20. C. $80. D. $160.