An increase in demand for Blu-ray disc players occurs. Which of the following statements is TRUE for individual firms that produce Blu-ray disc players?
A) The price of Blu-ray disc players will decrease leading to an increase in the demand for labor by the firm.
B) The price of Blu-ray disc players will increase leading to an increase in the demand for labor by the firm.
C) The price of Blu-ray disc players will increase leading to a decrease in demand by customers leading to a decrease in the demand for labor by the firm.
D) A change in demand at the industry level does not influence an individual firm's demand curve for labor.
Answer: B
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Which of the following events would cause a rightward shift in the market supply curve for automobiles?
A. A technological improvement that reduces the cost of production. B. A decrease in the number of sellers. C. An increase in the wages of autoworkers. D. A higher sales tax on automobiles.
Self-sufficiency is the best way to increase one’s material welfare.
Answer the following statement true (T) or false (F)
Based on the figure below. Starting from long-run equilibrium at point C, a tax increase that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies.
A. D; C B. D; B C. A; B D. B; C
Some contend that the outcome of any free market is ultimately inequitable because
A. some people become rich while others remain very poor. B. public goods will be underprovided by the government. C. periods of unemployment and inflation still occur. D. firms are not forced to take external costs into account.