A decrease in the price level
A) shifts the AD curve to the right.
B) shifts the AD curve to the left.
C) causes an upward movement along the existing AD curve.
D) causes a downward movement along the existing AD curve.
E) none of the above
Answer: D) causes a downward movement along the existing AD curve.
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According to economic theory, the political process tends to
A) benefit every participant equally. B) harm every participant equally. C) concentrate benefits in the hands of special interest groups and disperse the costs throughout the uninformed voters. D) support public projects that clearly pass a strict benefit-cost analysis.
Marco goes to the pet store to buy a dozen Koi fish for his new Koi pond. He is willing to pay $200 for the dozen fish, but buys them for a total of $140. Marco's consumer surplus from the purchase is
A) $5. B) $60. C) $140. D) $200.
In 2011, the Census Bureau introduced an alternate poverty measure that is based on:
A. the price of housing, and adjusts for geographic differences in the cost of living. B. the average income of the lowest quartile of income earners. C. the prices of food, clothing, shelter, and utilities, and adjusts for geographic differences in the cost of living. D. the price of food, and adjusts for geographic differences in the cost of living.
If demand rises and supply falls, equilibrium price will _____ and equilibrium quantity will _____.
Fill in the blank(s) with the appropriate word(s).