Which of the following would cause prices and real GDP to rise in the short run?
a. Short-run aggregate supply shifts right.
b. Short-run aggregate supply shifts left.
c. Aggregate demand shifts right.
d. Aggregate demand shifts left.
C
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As a result of a tariff, domestic consumers buy
a. fewer units at a higher price. b. fewer units at a lower price. c. more units at a lower price. d. more units at a higher price.
A question on an economics exam asks: What happens in the market for margarine when income rises? Allison, an excellent student, shows the demand for margarine decreasing. Is she necessarily wrong? Why or why not?
If total cost is €700 when output is zero, €1,000 when output is 10 and €1,400 when output is 20, then fixed cost is:
(a) €1000. (b) €1400. (c) €900. (d) €700.
In a typical oligopolistic market, there are
A) no barriers to entry and firms sell homogeneous products. B) substantial entry barriers, and firms are too large to strategically interact with each other. C) substantial barriers to entry and firms interact strategically with each other. D) no barriers to entry and firms interact strategically with each other. E) no barriers to entry, but firms sell differentiated products.