Recall the Application about craft beer and the increase in the price of hops to answer the following question(s).Recall the Application. Because hops are inputs in the production of beer, an increase in the production of beer resulted in:
A. an increase in the demand for hops.
B. a decrease in the demand for hops.
C. an increase in the quantity demanded for hops.
D. a decrease in the quantity demanded for hops.
Answer: A
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The opportunity cost of an apartment in a rent controlled market is equal to
A) the rent charged for the apartment. B) the opportunity cost of searching for the apartment. C) the rent charged for the apartment plus the opportunity cost of searching for the apartment. D) nothing because of the surplus of apartments when there are rent controls. E) the rent charged for the apartment minus the opportunity cost of searching for the apartment.
Macroeconomists think that
a. most questions about individual markets are more important than the overall economy. b. questions of overall unemployment are less important than the jobs of particular workers. c. the details of resource allocation and individual market prices are less important than the amount of national output. d. the causes of unemployment usually lie with the personalities of individual workers. e. the price of particular products is more important than the overall price level.
The aggregate demand curve slopes downward indicating that
a. an increase in the general price level will reduce the aggregate quantity of goods and services demanded. b. an increase in the general price level will increase the aggregate quantity of goods and services demanded. c. a change in the interest rate will alter the aggregate quantity of goods and services demanded. d. consumers substitute between domestic-made and foreign-made goods as their relative prices change.
An added benefit of inflation is that it allows for the possibility of
a. menu costs. b. aggregate supply shocks. c. negative real interest rates. d. recessions.