In the United States, the Phillips Curve in the 1960s

question 114

Multiple Choice

In the United States, the Phillips curve in the 1960s:

• A)shifted upward dramatically.
• B)shifted upward moderately.
• C)remained stable.
• D)shifted downward moderately.
• E)shifted downward dramatically.

Identify factors that cause shifts in demand curves.

Analyze the effect of price changes on the demand for goods and services.

Understand the concept of substitutes and complements in affecting demand.

Recognize the impact of income changes on the demand for normal and inferior goods.

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Definitions:

Natural Monopoly

An industry that realizes such large economies of scale that single-firm production of that good or service is most efficient.

Profit-Maximizing Price

The price at which a firm can sell its product to earn the maximum possible profit on those sales.

Marginal Revenue

The additional income from selling one more unit of a good; it is the change in total revenue from an additional unit sold.

Marginal Revenue

The increase in revenue resulting from the sale of one additional unit of a product.