If the price of oil, a close substitute for coal, increases then the
a. supply curve for coal will shift to the right.
b. demand curve for coal will shift to the right.
c. equilibrium price and quantity of coal will not change.
d. demand curve for coal will shift to the left.
e. supply curve of coal will shift to the left.
b
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Which group of economists argues that the stock market crash of 1929 significantly reduced wealth, causing consumption to fall and resulting in a significant downturn in residential construction and investments?
(a) Classical economists. (b) Keynesian economists. (c) Monetarists. (d) Austrians.
Consider the following:
(i) Describe the indifference curves that are used to represent homothetic preferences. (ii) Assume preferences are homothetic and consider the representative agent. Suppose a technological advance increases people's current and future endowments. Under what circumstances would the technological advance have no effect on the interest rate? Under what circumstances would the technological advance cause an increase in the interest rate? Explain.
Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD1 the result in the long run would be:
A. P4 and Y1. B. P4 and Y2. C. P5 and Y1. D. P5 and Y2.
It is spring, and several graduates of State U are seeking employment. State U graduates have evenly distributed GPAs, from 2.0 to 4.0, with an average GPA of 3.0. The largest employer in town, Acme Dynamite, is interviewing candidates, hoping to hire a few hard workers. While Acme does not require students to submit a transcript with their applications, the hiring officer believes that high GPAs signal a willingness to work hard. Gerry is a recent graduate if State U and is applying for a job with Acme. Gerry's GPA is 2.9. Should Gerry include a transcript with his job application?
A. No, because his GPA is worse than average. B. No, because Acme did not request it. C. Yes, because if he doesn't send a transcript, Acme will infer that Gerry is willing to work harder than he actually wants to work. D. Yes, because students with higher-than-average GPAs will always include a transcript, so if Gerry doesn't send a transcript, Acme will infer that Gerry's GPA is even lower than it is.