Refer to the information provided in Figure 26.4 below to answer the question(s) that follow.
Figure 26.4Refer to Figure 26.4. Suppose the economy is at Point A, an oil price decrease could move the economy to Point
A. E.
B. B.
C. C.
D. D.
Answer: D
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Which of the following is true?
A) If the price of a substitute rises, the demand curve shifts leftward. B) An increase in the cost of producing a good shifts the demand curve leftward. C) An increase in population shifts the demand curve leftward. D) If people expect the price of a good will rise in the future, the demand curve shifts leftward. E) For an inferior good, when income increases, the demand curve shifts leftward.
A perfectly competitive industry is in long-run equilibrium. Some firms in the industry adopt new technology that reduces the average total cost of producing the good
In the long run, the price is ________, firms with the new technology make ________ economic profit, and firms with the old technology ________. A) lower; zero; exit the industry B) constant; a positive; make zero economic profit C) lower; zero; switch to the new technology or exit the industry D) constant; zero; exit the industry
Discuss the effects of ongoing inflation based on the PPP theory
What will be an ideal response?
Suppose the government imposed a minimum price in a market and a reporter for a local newspaper wrote a story on it. The headline on the story would read:
a. Government Action Calls For Ration Coupons b. Rationing Price Replaces Market Price c. Price Ceiling Replaces Equilibrium Price d. Price Floor Replaces Equilibrium Price e. Equilibrium Price Lowered